By Armando “BUTZ” Bartolome
After so many years of struggle in building a business, some entrepreneurs may have lost track of the time that they continue to focus more on how to keep their business going and fail to see that there would come a time that they would need to step down. We must accept the fact that thing reaches a certain point that we all must slow down and just become regular people like the rest. But have you prepared for your retirement?
I know some entrepreneurs who have had their business for so many years, only to find out that his finances have not been properly handled, particularly that the next generation of entrepreneurs stepped in, which were more on just raking in the money and has an untiringly “shop-till-you-drop” attitude. Poor old man, who spent all his years, ensuring that he can leave a legacy…. And when it was truly time for him to pass down the baton, he was left with almost nothing.
Planning for your retirement should be one of your important goals during the time when you are capable of earning. Your earnings should not just be intended for what is needed for the today or for the following day. You should be able to ensure that when you reach the retiring age, you can still enjoy your life without worries.
Let’s face it. When we get old, we may not want to buy so many things as we used to when we were younger. However, we would still be needing money to ensure that we are always in great health. And going to the doctor is not cheap.
Let me share with you the ways that can help you prepare for your retirement:
- Your business goals should be equal to your retirement goals. This means that as your business becomes more profitable, you should align your business wealth with your retirement wealth. Being 65 years old should not stop you from doing the things that you have always loved. If you keep a lifestyle, healthy enough to keep your wallet intact, then, why stop?
- Learn to follow a budget. A great entrepreneur knows how to make use of his finances wisely. No matter how profitable his business becomes, the money coming in should not make him think that it would always be that way all the time. Therefore, setting a budget plan ensures that he is able to safely keep a certain amount for his retirement.
- Use a system that will automatically allow you to set a certain percentage of your income for your retirement. Example, like setting aside 10% of your income and deposit it to your bank. So apart from still having little cash in hand that you have drawn out from your budget plan, you literally take a certain amount to be kept – and in no other circumstances should it be taken out other than for emergency purposes.
After several years of doing this, check your savings and see how much you have saved. Wouldn’t you feel more secure knowing that there is something that you can have for your retirement needs?
- Deposing your money to the bank is not the only way on how you can have money to use for your retirement. There are investments that you can safely put your money into and assures you a great return.
- Real estate – We know that the value of any property never goes down. And to invest your money in real estate would truly give your money’s worth. A property that you may have bought for Php5 Million today can increase to about Php7 Million in a few years.
- Stocks – Just make sure that you choose the right ones to invest your money. If you start young, this would mean higher returns.
- Bonds – Your money grows when you choose to place your money with the right company. And just like investing in stocks, securing a bond entitles you to have greater returns (the amount that you earn depends on the amount that you have invested and the interest rate).
- Of course, never forget about securing life insurance. Some insurance companies may now be struggling with convincing people to avail of such kind of investment after several insurance companies just disappeared. But, I assure you that there are still insurance companies out there that you can trust. Make this as one of your options in securing your money.
All of these preparations for your retirement is not only for your own sake. This takes out the burden from your family. It is truly best to plan out your life well. Learn to make both short-term and long-term goals.
For questions and more information, you may email business.mentor@butzbartolome.com