Retirement Misconceptions for Small Business Owners

Today’s Wisdom:

Small business owners have a lot on their plate on any given day so planning for retirement can get pushed aside or overlooked. Other times, owners think that the revenue generated and assets accumulated is enough to replace financial planning. Let’s take some time today to clear up some common misconceptions so business owners can relax and enjoy their hard work when the time comes.

Want to save time? Click the timestamps below to jump ahead to specific spots in the episode.

What You’ll Learn:

Let’s face it, small business owners are hyper-focused on building their company. Every day they’ll be wearing many hats and juggling multiple projects to achieve growth, and that doesn’t leave a lot of time for retirement planning.

It’s easy to believe that all the hard work will pay off on its own, but no matter how successful your business becomes, planning is still a necessity. That’s why we want to take some time to clear misconceptions that exist for owners and help avoid any surprises when retirement approaches.

On this episode of Money Wisdom, Joel will discuss why a successful business doesn’t mean a successful retirement, why your assets net worth might not be enough by itself, and what you need to consider if you plan to pass the business to your family. As a business owner himself, Joel uses these principles in his own life.

This show will also feature three mailbag questions about pension buyouts versus lump sums, making plans for life events, and thoughts on the next presidential election. Spoiler, Joel isn’t endorsing anyone on this show.

So let’s get started! Here’s the list of main topics you’ll hear on this episode of the Money Wisdom podcast (Just click on the timestamp to jump to the specific clip):

[1:35] – Let’s get things started with a little history lesson.

[3:17] – History seems to repeat itself.  

[4:40] – Let’s talk about business owners and some misconceptions they have about retirement.

[5:08] – Misconception: If I execute my business plan, my retirement will take care of itself as well.

[5:49] – It’s very important for business owners to have money somewhere else other than your business.  

[6:39] – Misconception: I might not have much in the way of liquidity but my net worth is high so I’ll be fine.

[8:10] – Misconception: It’s a family business and I know they’ll do well and take care of me when I pass it on.

[10:16] – Mailbag question: My company is offering a lump sum pension buyout or we can just keep the monthly pension. What should I do?

[13:25] – News story: A couple found a bunch of money accidentally put into their account and spent it all. They are now facing felony charges. It reminded Joel about his time growing up in the Bahamas.

[15:33] – Financial Dictionary: What does ‘Qualified Dividends’ mean?

[17:41] – Mailbag question: I have a lot of major life changes occurring in the next months that will affect how I invest. Should I just park my money in cash until things settle down?

[19:52] – Mailbag question: It looks like we’ll end up with another presidential election where I don’t want to vote for either candidate. Is there someone I might consider voting for that would be better for me financially?

Final Thoughts:

“I am a business owner here at Johnson Brunetti and I would be foolish if I didn’t have a significant amount of money saved outside the business. Where to save it? That’s a whole different discussion that we can have. But it’s really important that your financial future is separated from the business.”

– Joel Johnson, Money Wisdom Podcast

3 Related Items & Resources:

Money Map Retirement Review

Attend A Workshop

Introduce A Friend

Submit A Question

Call us: 1-800-757-0436

Thank you for listening!