Since Women business owners are a specialty of mine, I thought we’d end Women’s History month with some common mistakes we see and how to fix it!
- Not selecting the right retirement vehicle
There are so many different retirement plans a business owner can chose for their company. Particularly if you have small business, there are so many options and rules for each plan. You have to do your research on which plan works best for your company and your goals.
- Not fully funding their retirement plan
We see a lot of business owners taking funds as a salary instead of deferring to retirement plans. When you do this, you end up paying higher taxes. You can keep your tax bill lower by fully funding your retirement plan.
- Not investing their retirement plan
This one hurts me the most. We see business owners fund retirement plans but not invest them and the plans are sitting in cash or CDs for years at a time. Invest your plan. One of the biggest benefits of a retirement plan is that you get tax free growth. Use it!
- Trying to do everything themselves
I get it. As a business owner you are used to being “the chief cook and bottle washer”. You have to do it all. But there are some things where you should get help, like retirement plans. It’s such an important piece of your financial puzzle that you can’t afford to ignore it.