Strategic Retirement Investing To Support A Comfortable Lifestyle


The best retirement investments save a size-able amount to support a small business owner‘s retirement plans. Just like professionals from other walks of life, small business owners should also make strategic retirement investments. The flexibility of small businesses allows the small business owners to continue working past the age of retirement. Nonetheless, choosing some of the best retirement investments is still advisable. The best retirement options present more choices, eliminating the necessity to compromise.

However, excessive responsibilities, financial constraints and tax considerations, prevent small business owners from making timely retirement investments or endowment funds. Most small business owners are not even aware of all the available best retirement options. To remedy this issue, the best retirement investments are provided in the following post.

Assess Your Requirements

Evaluating future plans, ambitions and financial goals enable small business owners invest in the right retirement plans. If you go ahead with a clear retirement goal, accomplishing it will be easier. Retirement plans not only secure your future, but they also secure your employees’ future. Of course, having appropriate retirement plans establish your business’s credibility. As a result, you can attract and retain efficient employees.

Another considerable benefit of the best retirement plans is tax benefits. The contributions you make to these plans will fall under business expenses, affording you substantial tax benefits. But, considering the benefits of the best retirement plans is not enough. You should compare these benefits with your personal requirements and your cash flow. Consider factors like employee contribution and maintenance rules before you make a final decision. Surely, assessing your requirements will enable you to choose the most appropriate best retirement investments.


Annuities are an excellent investment option for retirement purposes. What are annuities? They are contracts between insurance companies and policy holders that guarantee a specific or variable return for invested capital. They also guarantee that the insurance company will make payments to the policy holder and his or her beneficiaries over a given length of time. You can start receiving payments immediately. Or, you can defer payments until retirement. This makes it an excellent investment option for retirement.


The Savings Incentive Match Plan for Employees or SIMPLE IRA is ideal for small businesses with 100 or fewer employees. Sole proprietorship, corporations, partnerships and S corporations can take advantage of a SIMPLE IRA. Throughout 2015, employees are allowed to contribute up to $12,500 tax deferred to this best retirement investment. The maximum employer contribution per worker is $5,300. You do not need Form 5500 to set up SIMPLE IRA. Moreover, there is no minimum contribution rule for employees. Besides, employers can set individual limits to each employee’s contributions.  In addition, you can choose to either pay a plan fee of $350 or collect $25 per participant. Under this plan you have to match 3% of employee’s contribution. Primarily, easy maintenance makes SIMPLE IRA a convenient retirement investment to track using your online financial software.

Solo 401(k)

Small business owners, running a business with no other employee but their spouse, should invest in a Solo 401(k). This best retirement investment option is suitable for solo proprietorships, partnerships and corporations that do not have any common law employees. On the other hand, you and your spouse can contribute as employer and employee to this plan. For 2015 taxes, small business owners can contribute up to $18,000 tax deferred as an employee.  Additionally, they can further contribute 25% of their earnings as the employer. A Solo 401(k) does not require any annual fees, which makes it a practical option for small businesses.

Roth 401(k)

To reap further benefits, you can choose a Roth 401(k) offered by Vanguard and few other brokers. A Roth 401(k) lets you save post-tax dollars instead of pretax dollars. However, small business owners have to file Form 5500 if the total amount in Roth 401(k) exceeds $250,000. By investing in Roth 401(k) you can avoid paying higher rates of taxes and never have to worry about the Euro rate like you would with Forex investments.


Simplified Employee Pension, or SEP IRA, is another convenient individual retirement account that small business owners can consider. You can either contribute $53,000 or 25% of your wages as an employer, depending on which amount is lower. Opening a SEP IRA account is easy because it does not require any annual maintenance fee. Almost all small business owners can set up a SEP IRA, without IRS reporting.  Most importantly, easy maintenance makes SEP IRA popular among busy small business owners.

Simple Mistake To Avoid

There is one simple retirement investment mistake that many businesses fall prey to, but you do not have to become one of its victims. Once you know how to calculate return on investment, be sure that no matter what type of retirement investing plan you choose to participate in, you are aware of the fees associated with the account. Many people blindly contribute to their 401(k) without even knowing that plan fees can cost your up to 4%. That is why it is so important to be aware of these fees. Make sure your account charges no more than 1.5% for everything. This way you can save more money for retirement. Wondering how to best invest for retirement? Avoid this simple retirement investment mistake.

The best retirement investments create a safety net, protecting small business owners from hardships after retirement or selling your company. They are low cost and easy to maneuver, enabling small business owners to focus on more important tasks. However, one must select the best retirement investments according to personal goals and requirements. Evaluating the pros and cons of the best retirement investments will facilitate a well-informed decision.

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