A Business Owner’s Retirement
Updated: Nov 3, 2019
So many believe that planning for retirement is as easy as opening a savings account and purchasing shares of stock.
As a business owner, I can tell you that it is not that simple. Things happen in life, and a majority of you will eventually pull from your so-called retirement to fund your emergency needs, leaving you without the money you need.
There is a more realistic approach that shouldn't come as a surprise. First, as you build your business, consider the fact that you will want to sell it one day. This will be a large portion of your retirement. Build your company so that it can operate at 100% without you. You should plan the future of your company so that you can take a 6-month vacation, and it will continue to prosper and grow while you are away. If your business is solely dependent on you, there will be no big payout when you're ready to cash out.
To accomplish this, you must give up some extra money now. This means finding and paying key employees, as well as minority partners. You need others who have a vested interest in seeing the company succeed. You don't have to use executive search services and pay high prices for all of your key pieces. Like a good football or baseball coach, you must scour the Earth to locate hidden talent who share your vision of the future. Get your employees young and energetic. No offense to the older crowd (I'm 45), but there is no long term business future in us. Get them young, train them well, and they will lead the company as you age.
Purchase raw land when possible. Get a farm where the kids can play or a riverfront lot in the middle of the mountains. The property will go up in value over time while you and your family get to enjoy nature. Nature can be useful for relaxation, which is needed. A calm mind can dream big, which will help you succeed.
Try not to buy regularly priced land. Look for deals and those seeking fast cash. You need to be patient, but the specials are out there. If you cannot afford to pay cash for your property, take out a loan, or make a deal with the owner to pay over 5-10 years. Never pay regular bank rates over 15-30 years. There is too much interest built into the equation.
Finally, as your income grows, get yourself a vacation home somewhere warm. Head to the Caribbean. Do not buy or build in an expensive area and make sure the government is stable. A good example is the Dominican Republic. It is beautiful, cheap, the people are friendly, and the weather is incredible. You want to be able to build a substantial mansion for half a million dollars. Consider locations where cruise companies are developing new ports or a city with a new international airport. You want to be within 15-20 minutes of that airport. Anything with a good view of the ocean that is cheap will be much more expensive later. In most Caribbean destinations, the taxes are low or non-existent for foreign investors, and what you pay now will double or triple by the time you retire.
Yes, I believe in a savings account. Yes, I believe in stock. However, I do not lean on them as much as most Americans. I put my money into things I can use and enjoy now that will also pay off big later.
Follow some common sense rules and think a little outside the box. Relax, dream big, and remember to thank God for every moment of this incredible life you have been given.
Thanks for reading. If you like this or any of my other articles, please make sure and share them on social media.
Founder and President
Green.Money (Green Payment Processing)
About the Author:
Lonnie Passoff started the first-ever internet-only electronic check processing firm in 2008. It has grown to be the largest e-check processor on the planet. A veteran of the United States Army, he has become a multi-millionaire through honest, smart business practices. He frequently speaks at business conventions and is a paid advisor to multiple corporations. He also holds a seat on the board of breast cancer non-profit, as well as a clean ocean initiative in the Caribbean.