Key Points
- The article provides three steps for small business owners in Denver to start saving for retirement.
- The first step is to choose a retirement plan that fits the needs of the business and its employees, such as a Simplified Employee Pension (SEP) plan or a 401(k) plan.
- The second step is to determine the contribution limits and deadlines for the chosen retirement plan, and to make contributions on a regular basis.
- The third step is to work with a financial advisor who can provide guidance on retirement planning and help business owners stay on track to meet their retirement goals.
- The article also emphasizes the importance of starting to save for retirement early, as compound interest can significantly increase retirement savings over time.
Introduction
For small business owners in Denver, saving for retirement may seem like a tough hurdle because you’ve hustled for so long and potentially, only recently are now earning good money. The good news is, it’s not as hard as you might think. With a thoughtful financial plan and some forethought, you can make sure that you’re on the right track for retirement. In this blog post, we’ll outline three steps that small business owners in Denver can take to start saving for retirement. From setting up a retirement plan to contributing regularly, we’ll help you get on the right track. Read on to learn more!
Step One: Determine How Much You Need to Save
As a small business owner in Denver, you probably recognize how expensive this city is and, in order to retire in Denver, you may be wondering how much you really need to save every year. There are a few factors to consider when determining how much you need to save, including your age, income, and desired retirement lifestyle.
Age is an important factor to consider when determining how much to save for retirement. The general rule of thumb is that you should aim to have saved 10 times your current annual salary by the time you retire. So, if you’re making $50,000 per year, you should aim to have at least $500,000 saved by the time you retire.
Of course, this is just a general guideline and your actual savings goal may be higher or lower depending on your individual circumstances. For example, if you want to retire early or maintain a luxurious lifestyle in retirement, you’ll need to save more than someone who is content with a modest lifestyle.
Income is another important factor to consider when saving for retirement. If you make a higher salary, you can afford to save more each month than someone who makes a lower salary. You may also want to consider saving a larger percentage of your income if you’re self-employed or have irregular
Step Two: Figure Out When You Can Retire
As a small business owner in Denver, you may not have the luxury of a 401(k) or other employer-sponsored retirement savings plan. But that doesn’t mean you can’t start saving for retirement on your own! The first step is to figure out when you can retire.
If you want to retire at age 65, you’ll need to start saving now. The earlier you get started putting money away, the more time your money will have to grow. Use a retirement calculator to figure out how much you need to save each month to reach your retirement goals.
You may also want to consider working a few extra years to boost your retirement savings. If you can wait to retire until age 70, you may be able to significantly reduce the amount of money you need to save each month.
No matter when you decide to retire, remember that it’s never too late to start saving for retirement!
Step Three: Invest in a Retirement Plan That Works for You
There are many different retirement plan options available to small business owners in Denver, and it can be tricky to decide which one is right for you. However, there are a few key things to keep in mind when choosing a retirement plan for your small business.
First, you need to make sure that the retirement plan you choose offers tax advantages. This is important because it can help you save money on your taxes now and in the future.
Second, you need to make sure that the retirement plan you choose will provide you with the income you need in retirement. There are many different types of retirement plans, so be sure to research each option carefully before making a decision.
Third, you need to make sure that the retirement plan you choose fits into your overall financial goals. For example, if you want to retire early, you might want to choose a different type of retirement plan than if you want to keep working until the traditional retirement age.
There are many other factors to consider when choosing a retirement plan for your small business, but these are three of the most important. By taking the time to choose a retirement plan that works for you, you can ensure that you’ll have the income you need in retirement.
Know When To Hire An Expert Financial Advisor in Denver
As a small business owner in Denver, you may be asking yourself when the right time is to hire an expert financial advisor. The answer to this question depends on a few factors, including your stage in life and your financial goals.
If you’re early in your career, you may not need the help of a financial advisor just yet, however, if you’re nearing retirement age or have complex financial goals or circumstances, it may be time to seek professional help.
A good rule of thumb is to review your finances every few years and make sure that you’re still on track to meet your goals. If you find yourself falling behind, or if your goals have changed, it may be time to consult with a financial advisor. The hard part is, if you’re a small business owner, you probably should aim to find an advisor who specializes in financial planning for small business owners because your financial life is atypical. You have risks and the potential for an incredibly earning ability once your business is successful.
There are many benefits to working with a financial advisor, including peace of mind and expert advice. If you’re ready to take the next step in securing your financial future, contact a qualified financial advisor in Denver today like Progress Wealth Management.
Conclusion
Saving for retirement as a small business owner in Denver can be a daunting task, but it doesn’t have to be. By following these three steps — setting goals, automating your savings, and diversifying your investments — you can make the process much easier and less stressful. And, by taking action now, you’ll set yourself up for a bright future down the road. There’s always a seemingly good reason to wait but before you know it, you’ll be old and wanting to retire. Start today.