I’ve heard it said that 50 is the new 40, and 40 is the new 30.
As a business owner, if you’ve been busy keeping all the balls in the air, running and growing your business but haven’t gotten around to planning for the day you eventually stop working, retirement or otherwise, this strategy is for you.
If you are a small business owner (with no employees outside of your spouse), make over $200,000+ a year, are 45+ years old and haven't started saving for retirement, I have a plan for you to retire with $3,000,000. And if you're married, you can double this amount to $6,000,000.
Using the tax code and a specific Small Business Retirement plan to your advantage. This retirement plan has advantages over the more common SEP IRA or other types of retirement plans.
Here’s are the assumptions and plan:
45-year-old business owner, income of over $200k+ and $0 in retirement account.
15 years of contributions over a 20-year period, assuming a modest return, you'll have nearly $3 million dollars ($6 million if you include your spouse).
Over this same period of time, you will have written off over $1 million dollars in business expenses and personal deductions that saved approximately $300,000 in federal taxes alone.
You might be surprised as to what's possible, with proper planning it might just feel that we can turn back time.
-Paul R. Rossi, CFA