After years of building a business, some entrepreneurs forget that there comes a time to step down. Entrepreneurs must accept the fact that we all must slow down and become regular people. But have they prepared for your retirement?
I know some entrepreneurs who have had their business for so many years, only to find out that his finances have not been properly handled.
Poor old man spent all his years, ensuring that he can leave a legacy but when it was time for him to pass on the baton, he was left with almost nothing.
Planning for your retirement should be one of your most important goals while you are still capable of earning. You should ensure that when you reach retirement age, you can still enjoy your life without worries.
Let me share with you the ways that can help you prepare for your retirement:
1. Your business goals should be equal to your retirement goals. This means that as your business becomes more profitable, you should align your business wealth with your retirement wealth. Being 65 years old should not stop you from doing the things that you have always loved.
2. Learn to follow a budget. A great entrepreneur knows how to make use of his finances wisely. No matter how profitable his business becomes, the money coming in should not make him think that it would always be that way all the time. Therefore, setting a budget ensures that he is able to safely keep a certain amount for his retirement.
3. Set aside a certain percentage of your income for your retirement, maybe. Save maybe 10 percent of your income and deposit it in a bank and never use it other than for emergency purposes.
4. There are investments that you can safely put your money into and assures you a great return.
Real estate – We know that the value of any property never goes down. A property which you may have bought for P5 Million today can increase to about P7 Million in a few years.
Stocks – Just make sure that you choose the right ones to invest your money. If you start young, this would mean higher returns.
Bonds – Your money grows when you choose to place your money with the right company. And just like investing in stocks, bonds have greater returns.
5. Of course, never forget about life insurance. Make this as one of your options in securing your money.
All of these preparations for your retirement is not only for your own sake. This takes out the burden from your family. It is truly best to plan out your life well. Learn to make both short-term and long-term goals.
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(Armando Bartolome is known as the Philippines’ Franchise Guru, a mentor to numerous micro entrepreneurs who are now themselves big names in the industry. This article is reposted with the author’s permission and was previously published on The Business Mentor column posted by ABSCBN News. For questions and more information, you may contact Armando “Butz” Bartolome by email:firstname.lastname@example.org or on Twitter @philfranguru. His website is https://www.gmbmsglobal.com/ )