Virtually everyone in America considers retirement at some point, and in the past, planning for retirement was much easier.
Today, as people live longer, companies are offering fewer and lesser benefits, and the government wants a larger share of the pie, it can become very confusing to make a retirement plan.
Working for Yourself?
This problem can become further complicated if you work for yourself.
In a traditional employee/employer situation, the employer generally takes on a great deal of the retirement burden, providing for 401(k) savings, IRAs, health insurance contributions, and more.
When you work for yourself, you suddenly have to figure all of this stuff out without the assistance of an expert.
On top of that, even if you use business funds to invest, the stock market is uncertain and other investments are currently shaky.
To put things bluntly, working from home can be a very risky proposition when it comes to planning for retirement.
Where Do You Expect Expenses to Go?
Something to think about … when you retire, where do you expect expenses to go? For traditional workers, expenses often become desires.
This is to say, as referenced in the article, “Rethink Classic Retirement Plan Advice,” that retired people tend to spend more money since they have more free time available.
So, that sports car you’ve always wanted? Well, it can now become a reality. That expensive purse you’ve had your eye on for years? Well, now it’s yours.
Unfortunately, these expenditures can quickly cut into retirement savings.
When to Consider Retirement
If you’re wondering about when to consider retirement when running a home-based online business … well, that’s different for everyone and every business.
While you may like the idea of retiring at 40 or younger, unless residual income is there, you may not be able to achieve such a dream.
In addition, if you run an app service that relies on continual development of existing and new products, then you might not be able to retire in the way you think.
Keep in mind that you are heading the company, and without your guidance, things can change rapidly … just look at Apple after Steve Jobs’ exit.
If you’re a home business Internet entrepreneur, now is the time to plan for retirement.
You can save money in the traditional sense, using banks and so on, but you might also want to consider mutual funds.
It would also be wise to partner with a financial advisor to discuss additional implementation steps to ensure your money works for you now and into the future.
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About the Author: Andrew Rusnak is an author who writes on topics that include investment management and retirement.