Your business & your retirement
Building a successful business?
What about your retirement savings?
There are many issues that a small business owner needs to deal with on daily basis, and unfortunately superannuation and retirement savings is another one that could be a bit nightmarish. For many, building the business is “the retirement plan”, but as I keep saying, the very first rule about money is diversification, so don’t keep all your retirement savings in your business alone. If you don’t keep up with your superannuation contributions, not only there is no employer contributions to fall back on, but you end up with no savings outside of the business, which is a very risky plan for your future.
Retirement planning for small business owners
If you have staff, chose your default super plan wisely
If you have employees, you are required to pay 9.5% of the gross wage as SG contributions to their retirement fund. Each staff member can choose their own fund, but you need to provide a default in case. Choose this fund wisely, as a good and solid superannuation plan can attract and keep good employees in your business.
Review your personal & your business tax position
When your business starts being successful, tax planning is becoming essential. There are ways to reduce your personal and business tax bill and a solid superannuation plan can assist. this is a win/win situation – you can reduce tax and increase your savings at the same time.
Plan for selling down business well in advance
If you are planning to sell your business, give it plenty of time. Not only you would want to find the best buyer, the best price and the best sale conditions. Often it is not easy to find a buyer who is willing to pay your price, so be realistic and well prepared.
Pay yourself CG contributions as if you were an employee as well
You do not have anyone to make super contributions for you, so if you don’t – who will? Treat your SG contributions as a minimum “must”. It all adds up over time, and you might find some solid savings at the time when you are getting ready to retire.
Succession planning is a must for your business security & protection
It is important to protect your business with the right personal insurance. You need to protect it in case you fall sick or injured. Where would your income come from? How would you pay your staff? How would you meet your liabilities? Would a family member take it over, or would the business be sold? All those questions and more, need to be answered as part of your planning.
Selling your business and super - your opportunity of lifetime
Selling a business is a CGT event, so it is likely you might have a bit of tax surprise. But superannuation can help to manage your tax bill, as you could be eligible for number of concessions (subject to meeting specific rules). So, plan it well in advance.
From one small business owner to another, let's plan your journey to financial freedom & successful retirement
A short two-hour conversation can be of great benefit to your business. We review your current position, your plans for succession of your businessm, your business protection plan and your retirement plan. My goal is to show you the options. The choice is in your hands.
“to be successful, you have to have your heart in your business
and your business in your heart”
Thomas Watson Sr