Start thinking about an exit strategy. Do you plan to work forever? Do you hope to sell your business or will you pass the torch on to a family member? These are things to consider when you’re looking at your retirement options. You’ll want to make sure your business can function and thrive without you there.
You’ll want to establish a deadline of when you’d like to retire so you can plan accordingly. At this point, you need to start reviewing the financial implications of your exit.
Review your assets. You should start taking note of your company’s assets and how they can become part of your retirement plan. Do you have a lot of liquid assets, or is everything tied up in the profits from your business? Developing a retirement plan can include itemizing your assets and learning how they’ll turn into a retirement account after you’ve stopped working.
Envision the retirement you want. Do you want to travel? Do you still want to work as a consultant in your industry? These decisions affect how you save for retirement. You might consider freelancing or staying on with your company as a consultant for retirement income.
Max out your contribution limits. Your savings are important, so if you can start maxing out your retirement accounts now, you should. Your contribution limits depend on the type of account you choose, but you might look into investing some of the savings you’ve already accumulated into your retirement. If you have invested your savings in an account, be aware of any tax penalties if you choose to make withdrawals early.