Hey there, you entrepreneurial wizard! Are you busy spinning straw into gold with your business but still wondering how to turn that shiny dough into a solid retirement plan? Well, sit tight because I’m about to drop some financial wisdom bombs on you that will make retirement planning as easy as pie (and who doesn’t love pie?).
Let’s get one thing straight: Retirement today is less about rocking chairs and more about rock climbing. It’s not just about slowing down; it’s about having the freedom and flexibility to speed up, change direction, or go off-road if you want to.
So, how do you save for this new-age retirement while running your business? The answer, my friends, is as simple as starting small and letting it grow.
Now, an IRA might seem like an easy choice, but it’s like picking the low-hanging fruit – it’s simple, but it has its limitations.
If you’re looking for the best retirement plan for small business owners, let me introduce you to the solo 401(k) – a glammed-up version of the traditional 401(k), minus the entourage (employees).
Why is the solo 401(k) the Beyoncé of retirement plans? Well, it lets you contribute over $26,000 annually, depending on your age. But wait, there’s more! You can also add an employer contribution, totaling up to 25% of your wages. That’s a whole lot more than the meager $7,000 limit of an IRA.
But the cherry on top? The solo 401(k) comes with a loan provision – a financial lifeline you can borrow in case of emergencies. Think of it as your financial superhero cape that you can whip out when things get tough.
So, if you’re ready to bake smooth financial systems into the DNA of your business, grow a studio that’s both a source of income and a worthy investment, and live life on your own terms, then it’s time to embrace the solo 401(k). After all, life is too short for low returns on big energy!
Still have questions? Want to know more about the solo 401(k)? Check out my full blog post here and feel free to reach out.
Remember, your business’s job is to support you as much as you support it. So let’s make sure it’s doing its job well. After all, who said retirement planning can’t be as fun and fulfilling as running your own business?
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Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
