What Is Your Business Plan for Retirement?

Whether you are an entrepreneur, a business person, or an employee in any organization, retirement is an essential phase of everyone’s life. Retirements also are of different types, I am talking about the business retirement. In your life, there comes a time when you do not wish to continue with your work anymore and you … Continue reading “What Is Your Business Plan for Retirement?”

Whether you are an entrepreneur, a business person, or an employee in any organization, retirement is an essential phase of everyone’s life. Retirements also are of different types, I am talking about the business retirement. In your life, there comes a time when you do not wish to continue with your work anymore and you want to retire yourself from the job to enjoy other things of life.

In this article, I will discuss about business professionals who own a business and want to retire from it. There is a term named retirement plan that is very common in business industry. Retirement plan is almost the same as a business plan, but the purpose is different. A retirement plan consists of a proper planning of the activities involved in the retirement. The most important thing in this is the handling of the business after retirement. If you are a business owner and want to retire from the work, it is obvious that you need to make some plans on how your business will be continued once you take retirement.

Possible methods of your retirement plan may vary depending on your conditions. The most common and usual way of retirement is by handing over the business to your children. If you have a child qualified and experienced enough to handle the business, then you obviously would transfer the business rights to him/her. Many times there is a situation where a business person doesn’t have a child or someone close enough whom he/she can hand over the business.

There are still many opportunities, but most of the businessmen are unaware of these. The most successful way is to sell the business to someone else who can continue your business. There are many benefits of selling the business. First one is that you can get lot of money by selling your business. Another benefit is that by selling your business you can find someone you can run your business further, you can even demand for a partnership in the business for as long as you want. Next benefit is ease of the process. Selling a business is not a hard process if you do it right way. You just need to find a good firm that deals in selling and buying a business and then you can enlist your business there for certain amount of money and eventually you will receive requests from people who are willing to buy your business. These firms will also help you in dealing will the person so that you can get good price in return.

Selling your business is the best plan for the retirement and you will get enough money in return to spend your days in comfort. So what you are waiting for… just go with it.

Working After Retirement? Why?

The reasons people look up “work after retirement” are many, probably as many as the words on this page. This article is about an alternative to working after retirement. Some people don’t have to work. They just want to stay busy. Unfortunately, I think a lot of people just don’t have the money to retire comfortably.

Working After Retirement-Looking For Retirement Help?

There’s another wide ranging question. What kind of retirement help are you looking for? I’m a baby boomer, born smack dab in the very middle of the era of 1946-1964. That would be 1955 and do you know what I did not do for most of my life? That’s right, think ahead and save money for retirement.

I have a very strong feeling I’m not alone in that boat(smile) I don’t know exactly what the numbers are except I know they’re high. A very large number of people are not prepared to retire with no worries. If the retirement help that you are looking for is a handout then I can’t help you. But I can help you to help yourself.

Working After Retirement-Jobs for Retired People?

Just writing that sub headline made me shudder. Every day that goes by, it’s being proven over and over again that the 40 year plan doesn’t work. In fact I’ve revised the wording of the plan to say “work for 40 years to retire on 50% of what I can’t live on now”.

Listen, I know you are starting to get a little worried because that retirement date is drawing closer and closer. You may be 10, 5 or even 1 year away. Obviously the further away you are the better. You may have already retired and find it a struggle.

I found a better and faster way rather than looking for jobs for retired people. Why in the world would you want to subject yourself to that environment if there’s a possible alternative?

Let me just say that anything honest and respectable I salute. This is not meant to put down anyone who is at that retirement age and working at Wal Mart or a fast food restaurant. I’m just here to present an alternative. Not just an alternative but something that could exceed your wildest dreams of retirement.

Working After Retirement – OK But for Whom?

Haven’t you worked to make someone else rich long enough? The answer to your retirement worries is to start your own home business. I’m not talking about a franchise that costs hundreds of thousands or even a million dollars. I’m talking about a business you can start for very little money. You could change your whole remaining future, which could be a lot of years, with a 2-5 year business plan. Some people change their lives in a year.

Don’t expect to start hearing (reading) a bunch of hype because that is not what I’m talking about. I’m not talking about any get rich quick schemes because, frankly, there is no such thing.

I’m talking about a legitimate business plan that you could work at, even work hard at for a time and not only earn a significant monthly income but an income that keeps coming in whether you decide to work or not. Once you build it up it’s relatively easy to maintain.

Working After Retirement – Fuhget About It

You can start a business part time if you’re still working. Let’s say you’re 10 years away from retiring, you work a business plan for 1-3 years and retire even earlier than you had planned. What if you’re 5 years away? same thing. Two years away and you could create some spectacular timing. What if you’re already retired? Well, then you can work full time and get there even faster. You need something to do anyway, right?

One of the great things about having a home based business is the tax advantages. You could save a significant amount of money just on the tax savings.

These are very trying times and the outlook is somewhat gloomy depending on who you listen to. Not only do you need to increase your income you need to have assets which are valuable. What I propose to you will not be for everybody for all sorts of reasons or should I say, excuses.

This article you are reading could change your life and your future in a very big way. It may not be for you. That’s OK too. I believe you are reading this article for a reason, don’t you? You certainly have nothing to lose by taking a look. It just might be the answer to your prayers.

Life After Retirement: Writing a Small Business Plan

Just because you’re retired, it doesn’t mean that you plan to sit at home doing nothing with your free time. Sure, maybe you’ll get up an hour later than usual or take a few more vacation days, but perhaps you’ve got an idea percolating for a new business or extra retirement income. Congratulations!

Before you do anything else to earn retirement income, it’s important to create a business plan to guide your efforts and help fund your new venture without having to tap into your retirement savings.

The Small Business Administration (SBA) recommends that a successful business plan should include the following:

Executive summary
Market analysis
Company description
Organization and management
Marketing plan
Services or products
Request for funding
Financials

The Executive Summary

Your business plan’s executive summary explains what your company is and where you want it to go. Because the summary is the first thing prospective investors and lenders will read, it needs to quickly catch their attention and make them want to keep reading.

Market Analysis

It’s important that you include a thorough market analysis to demonstrate that you understand where your product or service fits. The SBA suggests items to include are an industry description and outlook, target market information, market test results, lead times and an evaluation of your competition.

Company Description

Your company description should be a high-level look at the following key components:

What kind of business you’re planning on running
The markets you wish to reach
Your key differentiators
Profiles of top company management
The factors that you believe will make your business a success

Organizational Structure

The easiest way to illustrate your new company’s structure is with an organizational chart. You can create it in PowerPoint or Word – it doesn’t have to be fancy. But it does show that you’ve given a lot of thought about who will be doing what.

You’ll also want to include the legal structure of your business, whether it’s a sole proprietorship, an incorporated business, limited liability partnership or other business entity.

Marketing and Sales Strategies

You won’t be earning much retirement income if you don’t get the word out about your business. How will you do that? With a website and traditional advertising? Social media? Can you do it yourself or do you need to hire a marketing and sales team? Take some time to determine the right marketing course for you.

Products and Services

What are you selling? What services do you provide? For customers, it’s all about “What’s in it for me,” so it’s key to concentrate on offering products and services that have a distinct appeal to your customer base.

Requests for Funding

In this section of your business plan, you’ll want to focus on the amount of funding you will need to start your business. Include your current funding – such as your retirement savings – your future funding needs over the next five years, how you will use the funds, and any long-range financial strategies that would have an impact on your funding.

Financials

Finally, don’t over look the financials. Here’s what you may want to consider including in your business plan:

Historical Financial Data. If you already own a business that’s producing retirement income, include the last three to five years of your company’s income statements, the balance sheets and cash flow statements.
Prospective Financial Data. Prospective financial data is just as important in your business plan since lenders will want to see how you expect your company to do in the future.

Don’t Be Afraid to Dream Big

Stepping outside of your comfort zone, dreaming big and going after that dream is a real possibility. All it takes is some smart financial planning and you’re on your way to a new adventure – and the potential for more retirement income.

Planning Early Retirement

s a college student, have you ever thought about investing for your retirement? Although it may seem too early to even think about retirement, especially since you probably haven’t even started your career yet, it just might be a good idea. In the aftermath of hurricane Katrina, serious questions have been raised about social security system in our country. It seriously dented credibility of the world’s only super power to deal with its own people seeking help. It showed how elder people are more vulnerable to such disasters than the young ones as they lost their entire livelihood and are back to square in the twilight of their lives. They cannot rejoin the work force to earn what they lost. The whole situation emphasized the importance of personal savings.

Why to save and why to start it early

The most potent question is why to save in today’s plastic society. We can credit on finger tips, jobs market is decent and social security is still functioning. The answer is the society won’t remain the same, the economy won’t remain the same and certainly our priorities won’t remain the same. Let’s try to peek into future and analyze what are factors which will play their part in our decision making.

Demographic factors

As the American society is getting older the pressure on the social security will keep on increasing in the times to come. As the baby boomers are growing old the pressure when our generation will join the work force. will be immense. There will be considerable more percentage of people on social security vis a vis working population in times to come.

As with the advancements in the medicines the life expectancy of an average American is steadily growing. It will lead to pressure on social security system plus personal retirement saving has to last more than at present. Secondly the health bill will also increase which further will take away a chunk from savings.

Economical factors

Employment scenario

As Carly Fiorina former CEO of Hewlett Packard rightly put it ‘Today no job can be taken as an American birth right’. Outsourcing has put tremendous pressure on the job market. Companies are transporting jobs to inexpensive places abroad to maintain the bottom line. We have already seen what has happened to textile workers in seventies and eighties, back up office services at the turn of the century. Information technology is defining new ways of doing things and it has already made significant forage into death of distance and time. An American credit card holder today sorts out all the account related queries from an Indian sitting in far off places like Bangalore at one forth the amount an average American worker charges.

Today the glorious days of fat corporate pensions and generous employers contribution has started to become the thing of past. Companies like Wal-Mart are not even allowing workers to form union. The only buzzwords in corporate sectors are restructuring, outsourcing and retrenchment. Technology is replacing people at work and making business a lean and mean machine, better than ever before.

Sluggish stock market

Historically stock market use to give around 6-9 % return on the investments but as the economy has been stabilized the return has been lower. The future doesn’t look as promising as it was in the beginning of the turn of the century when dot com boom was at its peak. The crude is about to touch mid seventies high with most anti American countries controlling it. As the largest energy consumer in the world our expenses will spiral towards north than south.

Social Factors

Apart from demographic and economical factors there are lifestyle factors which are influencing the savings pattern. Today saving for retirements seems to be the last option on our minds but it needs our urgent consideration. Talking to various people suffering from lack of money in their retirement years I try to fix the puzzle –

o Most people start late – Holistically most people in twenties have priorities like owning their own house, or finding a new job. In their thirties they worry about their kids’ school and college expenses. And in late forties when they realize the importance of saving for post retirement years it is already too late and they end up building an insufficient buffer for years to come.

o Changing lifestyle – Today increasing divorce rate and growing tendencies of couples ‘living in’ will leave more people living alone in twilight of their life then ever before. With less company, people have to save more so that they can be well taken care of.

Sluggish economy, stagnant stock market, not so promising job scenario and social & personal factors will take a lot out of one’s savings in the latter years. To avoid such situations our generation has to start saving earlier for our post retirement years than the previous ones.

Savings doesn’t have to be “all or nothing!” one doesn’t have to choose between present financial obligations and saving for retirement years. Saving small amounts while paying for obligations can put compounding and tax-deferred growth to work for you. Just to put things in perspective – If someone begins saving $500 monthly at 40 and earns an annualized 8 percent return. At 65, they would have about $457,000. If that same person started saving instead at age 30, they would have that $457,000 10 years earlier, and even if they didn’t add another penny over the next 10 years, their retirement fund would grow to just under $1 million. Obviously it is a simplified example, but it states that the sooner you get started the more you save, the more the power of compounding return can help your balance grow.

Making a retirement plan

Making a retirement plan in twenties is lot different from charting one when you are in your mid forties. According to the Fidelitye401k.com site, experts estimate that “every one of us will need between 60 to 80 % of our final annual working income every year that we’re retired. Since Social Security usually provides only 40 percent of the average retiree’s income, many of us will need to rely on our own savings and investments”.

In a recent survey ABC/USA Today poll, few workers are saving barely adequade to afford a comfortable retirement. 69% of workers surveyed on the issue of retirement responded “running out of money” as their biggest worry. Less than half of all workers have correctly estimated how much they will need to support a long, comfortable retirement. For a couple to live comfortably on, say, $50,000 a year for 20 years will require $1 million in savings. And that doesn’t include the expense of assisted living, medical care, prescription drugs, or nursing home costs. To start early we can keep following aspects in mind while charting a retirement plan.

Define your goal – Goal definition is in nascent form right now, between twenty and thirty years one should look to find a continuous job and contribute small and consistent amount of money.

Make personal retirement goals – Have a good idea about how much you like to have in your nest when you retire and plan accordingly. As you will reach the peak of your career in forties so make timely provision year wise that will help you from lack of liquidity in twenties and thirties and making an enormous contribution later in your career. Try to achieve a balance.
Account for large one-time expenses – At this stage you must have taken education loan or paying home installments so make sure you make provision for them.

Make conservative estimates of return on investments – Most people falters on a good retirement nest just because overestimate the return on their investments or try saving late. So to avoid this pitfall making the future income estimation and inflation rate should be taken on conservative side.

Where one can invest

Mostly there are two ways of having retirement savings

1. Defined benefit plan

A Defined Benefit Plan promises the employee a specific monthly benefit at retirement and can be fixed in exact dollar amount. A participant in the plan is generally not required to make contributions in a private sector fund but generally public sector funds require employee contributions. Though most companies today are not providing it, Defined Benefit Plans guarantee retirement income security for workers, do not involve investment risk to participants, do not depend upon workers ability to save and defer taxes.

2. Defined Contribution Plan

A Defined Contribution Plan provides an individual account for each participant in the plan. The benefits depend upon the amount contributed by participant and affect his income, and performances of his investments. Some most popular defined contribution plans include 401(K) plans, 403(b) plans, employee stock ownership plans (ESOPS) and profit sharing plans. Under Defined Contribution Plan workers have a certain degree of how much they can save, it can be funded through payroll deductions, even lump sum distributions is eligible for special 10 year averaging and above all workers can benefit from good investment results.

As companies are struggling to secure bottom line and outsourcing various functions to cut cost, most companies mostly offer contribution plans these days. These plans are also favored by workers as they can define their savings limit and have an option of taking the money out, when needed. The most popular contribution plan is 401(K) and Individual Retirement Account (IRA).

What is a 401k plan?

A 401(k) is an employer-sponsored contribution plan. it allows the employee to divert some of his salary into a fund which is supported and contributed in some part by the employer.. the portion contributed by employee will not be considered part of his taxable income. In other words, that employee has lower taxable income than. The portion of salary saved and contributed into the 401(k) gets invested in different ways, usually into mutual funds, bonds and equity. Those investments grow on a tax-deferred basis, which means that the compounded growth of the investments is also not added to taxable income. It will only become taxable when it is withdrawn. Most employers contribute to their employees’ 401(k) accounts as an added benefit, by matching employees’ contributions in different ratios, and the most common arrangement is that the employer contributes 50 cents for each dollar an employee contributes, usually up to 6 percent of the employee’s salary.

Advantages of 401 (K)

Matching contributions is free money so one must at least contribute enough to make the employer pay his contribution.

You can roll it into your IRA once you decided to leave the job or can cash it even though it is not a preferred option. Using a Rollover IRA to maximize your eligible distribution from your employer’s plan provides significant benefits and protects your savings from current taxes and penalties.

You can withdraw your money just paying one time tax after reaching 59 and half years, or you can withdraw money after 5 years by paying 10 percent penalty. This can help if you are planning to start your own venture in early thirties.

Individual Retirement Account (IRA)

There are two IRA plans: Traditional IRA and Roth IRA.

Traditional IRA

Anyone who works or receives alimony can have to an individual retirement account ( IRA) . The employer has no role to play with this account. It is opened and maintained by the individual and usually opened with a investment company. For most people, the maximum contribution each year is $2,000. The cap may be lower if you have a retirement plan at work or your income reaches certain limits. One thing an IRA has in common with a 401(k) and IRA is the age to withdraw funds without penalty, in both the cases it is 59-1/2.

Roth IRA

The difference between the Roth and the traditional IRA is that Roth is not deductible, the funds must be held for at least five years and If withdrawn are made prior to that, there is a 10 percent penalty. If you hold the funds in a Roth for at least five years and make your withdrawals after you reach age 59-1/2, your withdrawals will not be taxable. Neither your contributions nor the interest, dividends on investments, capital gains are taxable.

Advantages of IRA

Spousal Accounts – There is an important exception to the rule that you must have compensation to have an IRA. If you have a job but your spouse does not, you can contribute up to $3,000 of your income to a spousal IRA for him or her.

There is no minimum age limit – There is no minimum age for IRA participation. If your 10-year-old has compensation from working in a family business through paper route, you can pay up to the limits in an IRA.

Conclusion

Times are changing for Americans today, Americans companies are facing unprecedented competition and to cut cost companies are either to restructure or pay less like Walmart. As the economy will get more sophisticated protecting our future will be an ongoing task rather than a last ditch effort. Investing in plans like 401 (K) makes sense as they not only inculcate a saving habit among us but also gives us freedom to chart the route of our future. Saving habits today can serve both us and the country in long run as historically saving rates usually defines the growth rate of countries

Retirement Articles – Life After Retirement

Why are you looking for retirement articles? This article is for people who screwed up and didn’t prepare for retirement. Are you wondering about what your life after retirement will be like? That depends on what you’ve done to prepare. Most people have not done much. It’s those people and anyone else who doesn’t think they’ve done enough that this article is written for.

Life After Retirement – Are You Ready?

There are all kinds of reasons people would search for retirement articles. Some may want to know how much money they will need. Others might be looking for a good place to retire to or some, and I fear maybe you, know that you have waited too long to start thinking about it and are starting to feel the squeeze.

Quite a few, especially in the economy we’ve been experiencing, were outright robbed, either through the stock market or their employer. Obviously that is not your fault.

You can save yourself, your family and your future. You have to save yourself because no one else is going to do it for you. I’ll tell you something else. If all of the so-called pundits are right, it’s not going to get any better any time soon. In fact it may get worse.

Retirement Advice

Here is the extent of my retirement advice to you. If you feel like you are in a world of doo-doo because you’re getting “up there” you had better find, not only a way, but a faster than normal way to get there.

With all due respect to Walmart greeters and the McDonald’s senior employees group (if there is such a thing), the closer you are to the age at which you want to pack it all in, you had better find a better way.

This is the part where I weed out all of the closed-minded naysayers who only believe in having a JOB as their vehicle to the “promised land”. Well, that never was the way and it certainly is not the way today. I’m not going to advise you to borrow half a million dollars to buy a franchise either.

Let’s compare a couple of situations. The first is what has been the traditional way since the turn of the 20th century, the industrial revolution. You work for someone else, helping them to get rich, for 40 hours a week for 40 years in order to retire on 50% of what you couldn’t live on in the first place.

Or, the negative Nellies and Neds can leave now, you follow a plan which, being conservative, for say, 2-5 years, where you can not only create an incredible income but that money will keep coming in even if you decide to quit working altogether. It’s called residual income.

This plan is not only taught at the Harvard Business School, it’s also highly recommended by the likes of Robert Kiyosaki, Donald Trump, even Bill Clinton. Now, I don’t know about you but I learned some time ago not to take financial advice from my broke friends, but from people who had done it.

It’s not just names you know either. You might be surprised at who is involved. In fact, if you know anyone who is involved in this business plan and they didn’t tell you about it, I’d be pissed. You might want to look for some new friends (smile).

Life After Retirement-Best Retirement Plan?

What is the best retirement plan? Well, I don’t think it’s the first of the two above. I think the best one is one in which you have most of the control, where your earnings are up to you and you’re not limited and where you can take advantage of the tax benefits that wage earners don’t get.

You could be 60 years old right now, have no retirement money socked away and still get to where you want to be. Working one, two or even three jobs will not get you there. If you don’t know yet what I’m talking about, although I suspect you do, it is network marketing, multi level marketing, MLM. It is a very legal and, I must say, very desirable way to plan your retirement.

Whether you know nothing about it, have tried it in the past and only succeeded in running off your friends and family, you need to look at it today. Network marketing has changed, especially with the internet.