Is it even possible to retire at 60?
It’s certainly difficult these days with the age of retirement creeping ever upward, but it’s possible with the right planning.
People get into business for themselves for a whole host of reasons, but one of the chief reasons for doing so is to provide financial security into retirement.
In fact, 45 percent of those who started a business did so because they wanted to control their own destiny, according to MYOB’s latest Business Monitor Research.
That’s up six points in six months, demonstrating it’s something on the mind of SME owners.
The rule of thumb has been that to retire at 60, you’ll need about 15 times the amount you’ve calculated for after-tax annual expenses.
For example, if you want to live on $60,000 per year, you’ll need about $900,000 in the nest egg.
The issue is that instead of using the superannuation system, a lot of SME owners are hoping that their business will provide the bulk of the cash they’ll need to live on into their retirement.
Pulling that one off is no mean feat.
Over the next week we’ll be delving into how to plan your business at each stage of your life to give you the best possible shot at retiring at 60.
This advice is, of course, general in nature and does not consider your specific circumstances.
If you’re after specific advice, please visit your financial planner or accountant for advice which considers your circumstances.
These articles will offer you a general guide on what approach you should take with your business in each decade of your life.