5 Strategies Used By Successful Women Entrepreneurs To Save For Retirement
Retirement is a complex concept to many and can be brought along challenges to face for all.
This dilemma increases twice fold when it comes to individuals who are business owners and hence invest a chunk of their personal savings and earnings into their venture.
Although sponsoring your start-up and planning for retirement can seem like matters on two extremes, they should not be that way.
A robust saving plan is crucial for every strong woman entrepreneur out there, especially since they tend to live longer than their male counterparts.
1. Understanding The Views Of Women Retirement Savers
During 2016, a survey was conducted by the TCRS (Transamerica Center for Retirement Studies) which brought out a number of facts that help you understand the general views of women retirement savers. Here are some of them.
- 21% of all women entrepreneurs are ones that have encountered success at an early age and will face utter cluelessness if they are ever forced to retire early.
- 56% of women included in the survey have miscellaneous concerns regarding their retirement funds.
- 46% of all the women included were found to be not confident of their retirement plan and if it ever will happen.
- 56% of these women were also found to be planning to work past the age of 65 and express uncertainty regarding their retirement.
There are several concerns that may lead to such concerns and worries. This write-up talks about how to allay these concerns and fund the retirement for each strong women with the help of the following recommendations.
2. Developing A Plan For Caregiving Responsibilities
It is integral for women entrepreneurs to build a support network to have a plan in place to share the responsibilities of caregiving. This can be related to aged parents as well as young children as women tend to be primary caregivers for any family.
Often women tend to sacrifice their time on their family, choosing over their profession. However this can sometimes be foolhardy as the lesser you work, the lesser you will be able to save for your own retirement. A prolonged period of absence from work will not just affect you’re your financial stability, but can also affect the future success of your startup/business.
Finding a work-life balance is also crucial here. Women entrepreneurs sometimes are forced to sacrifice time with their family for the success of their work. While this may be inevitable at some points of time, it is important to make sure you do not completely sacrifice your family time for work.
3. Investing In Retirement From An Early Age
When you are in the process of building a business, the cash flow may be non-existent and the last thing on your mind would be saving up for retirement. As this business climbs the ladder of success, the owners are put under a higher degree of pressure in order to maintain their success rate.
If you need an expert to help you think about retirement, you can take the aid of an agency or advisor who can guide you with suggestions and apt advice to help you save for retirement even during your startup stages for the business.
4. Investing Cash Distributions Wisely
When your business starts to bring profits and benefits, women entrepreneurs who have worked day and night to achieve this are advised to diversify her investments from a single source to prevent a risky dependence on a particular venture. In a similar manner, you should invest in retirement as a policy for the future and be allowed to keep the future secure.
5. Considering Cash Balance Plans When Profits Soar
When a business is at a stage where you get sufficient profits to run the business, earn some and save, it is the apt time to start actively saving up for retirement. Woman owners can consider cash balance plans or similar advance strategies as well when it comes to funding retirement plans. These plans have a higher contribution limit that simply increases with age which sets them apart from other retirement vehicles.
If a women entrepreneur lacks a history of working with a financial advisor, it may be necessary for them to make up for lost time and catch up. However, successful and significant cash flow should be available to ensure the business can endorse itself in such a plan.
Women are an amalgamation of strength, determination, and Morales. Every woman entrepreneur is an asset to the industry and should be proud of who they are. Starting early to save for their retirement is a huge way to say you are proud of the person you have become.