After building a business for decades, some baby boomers dream of retiring early. Using an experienced financial advisor for business owners can help you meet your goals. According to a recent article by HuffPost Post50, a Gallup poll reveals the average person in America retires at 62. Experts say it’s important to map out a road to your retirement, especially if you plan to retire early. As a business owner, you may have special concerns about how to invest for the future.
Retiring early is relative
A financial advisor for business owners assesses your current investments to figure out how much you need to supplement Social Security benefits. Depending when you were born, what’s an early retirement age for one person may not be early for you. If you were born in 1960 or later, your full retirement age is 67. According to the IRS site, a person born in 1960 or later will receive 70 percent of benefits at age 62 and 86.7 percent of benefits at age 65. People born between 1943 and 1954 or older baby boomers may receive their full retirement benefits at age 66. At 62, they get 75 percent of their benefits. At age 65, they get 93.3 percent of their benefits.
Calculating what you’ll need
According to the Huffpost article that cited an Employee Benefits Research Institute survey, only 44 percent of people have calculated how much they will need in retirement. A financial advisor for business owners will help you put together all the different pieces of the puzzle such as health care and assisted living costs, whether you’ll have any passive income stream from your business and how your spouse will affect your retirement income.
Facing the truth
Whether you are in a good financial spot or a difficult one, you deserve to hear the truth from a trusted financial advisor who specializes in business owners and professionals. You may need to revise your target retirement date based on projections of how your investments will grow between now and your early retirement date. Working a few extra years will not only allow your money to grow, but will mean greater Social Security benefits.
At Aurochs Financial Group, we have reputable fee-only financial advisors who can guide you on your path to early retirement. For more information about our financial services, please contact us.
Your Guide to Financial Independence