If you run your own business or are self-employed, your main initial goal will likely be to start making a profit as soon as possible. It can take a few years to achieve; in fact, most businesses don’t expect to be profitable for the first three years. It could be less time if you’re self-employed for two reasons. You probably won’t have had to find the level of investment like a business with its own premises. Plus, your overheads are significantly lower. Nevertheless, you can’t guarantee how long it will be before you start making an income. And once you start to profit, planning for your financial future, including retirement, can sometimes get lost in the excitement of spending some money on yourself now.
Pensions and Retirement
It’s never too early to start planning for your financial future and making provisions to support yourself in retirement. Even if you love working and plan to carry on as long as possible, you can’t know for sure how mentally or physically able you will be to do so. Or you might simply change your mind and wish to retire after all.
By starting young, you also have the option of retiring early and spending some time seeing the world or fulfilling some other dream. Paying into a pension is a viable way to enjoy a comfortable retirement. Choose your plan carefully as there could be any number of variables in different plans. One could offer higher returns but more limited access, and vice versa. The best thing to do is discuss what you need from your pension with a qualified financial advisor. This professional can give you impartial advice on the best option for your needs.
Making some shrewd stock market investments can provide you with a good return. This statement is epecially true if you go for reasonably secure shares that will steadily increase in value. You can hire a broker to do all your trading, or take advantage of online services that use robo-advisors. These artificial intelligence bots can manage all your basic investment requirements. And, with some companies, you can also talk to a human adviser for more complex needs. Have a look at what these companies offer to see if they have plans that would suit you, for example, the Betterment IRA.
Insurance: Planning for Your Financial Future
Life insurance differs from most other types like house, car, or pet insurances. Rather than your monthly premiums being an expense you don’t benefit from unless you have a claim, life insurance policies usually act as savings investments cashable later. Check what a policy offers for a return, and the sickness and eligible death benefits for you or your family. For instance, some policies guarantee a pay out what you’ve paid in. For others, you may get less than what was paid in.
Starting a business when you’re a young entrepreneur is exciting, rewarding and not least, a lot of hard work! If you aren’t already planning for your financial future, or are putting it off, start now with My Wealth Solutions or another knowledgeable financial adviser for a comfortable retirement.