CNBC recently released the results of a survey that came to an inescapable conclusion: small business owners have very limited retirement plans.
70% of the investment funds of small business owners, according to a survey of financial planners, are invested entirely in their own businesses, and not in any other options. While 89% of the small business owners had some stocks and about 2/3 owned bonds or real estate, these diversified investments accounted for only 30% of the total investments reported.
The majority of the small business owners in the survey met with their financial advisors annually, but fewer than one third got advice on their business plan from their financial advisor.
Note that this survey asked questions of the financial advisors of small business owners. That means that these numbers include only those small business owners who actually have financial advisors. The entrepreneurs who are flying by the seat of their pants financially aren’t even included in these figures.
If you own your own business, you may be relying on your company to fund your retirement. If so, your business plan should be included in your retirement plans. Contact us now for a free retirement analysis.