When you own your own home business, you get to set the rules – when you work, when you vacation, who you hire, who you fire … the list goes on.
But what about retirement?
What happens when you do retire? You’ve got to think about your retirement options, your health insurance options and what if you want to retire sooner than later…
Retiring early? Here’s what to know about your retirement options…
The thing about owing your own small business is that usually you are doing what you love. You’re not going to start a home-based interior design business if you hate design.
Hence, many small business owners continue working way past standard retirement age, simply because they love it and find fulfillment in doing it.
However, many small business owners just aren’t looking ahead to retirement as much or putting away what those working for larger corporations are.
First off, you have no employer to match funds as many large companies do. Secondly, finances are often tighter and there’s not the set amount to be put into a retirement plan.
As a small business owner, you should have that conversation with your accountant and try to set aside a proportionate piece of your income for retirement.
As the article “Retiring Early? Here’s What to Know about Your Health Insurance Options” shows, there is much to consider.
Health insurance is another big thing to think about for when your business closes its doors.
What will you do for health insurance for you and your family?
If you are over 65, you can utilize Medicare, but that usually doesn’t cover everything and people often choose to have supplemental insurance. If you are under 65, you’re on your own for finding health insurance.
Put Some Money Away for Healthcare
A good idea is to stash some money away (just like you’re doing for retirement) but designate it for healthcare.
You will still have to pay some out of pocket, no matter what coverage you have, like copays and deductibles.
However, because you, as a home business owner, have probably been taking care of health insurance on your own, it won’t be so different from that.
You can still have an individual policy or joint policy with your spouse. Because you’ve been doing this on your own with your business, you may be able to retire with no real financial changes to your healthcare plan.
If you are retiring early, you’ve probably already thought about what to do with your business.
Since you may have raised it like a child from the beginning, you’ve probably got some emotional ties to it.
Maybe one of your children is planning on taking it over or a business partner if you had one. You could sell it to someone in the same field, or a bigger corporation who wants to take it over. You may need some legal help here, so you can get what its worth.
Remember, the money you get from the sale of your business is the money you’ll have once the business is in someone else hands, and the more you can get now, the earlier you can comfortably retire.
Photo credit: Ambro at FreeDigitalPhotos.net
About the Author: Heather Legg is a writer who covers topics related to small business, social media and health care.