As a business owner, you’re heavily focused on your business – which is understandable. But this may also mean you’re not taking the time to consider how you can build assets – and wealth – outside of your business.
You may also think that you have plenty of time. But before you put off planning for for the future any longer, there are some suprising (and sobering) facts you should consider.
I’m a strong believer in connecting peope with the right experts, so I’ve asked one of Melbourne’s leading financial advisors, Reuben Zelwer, to share with us his top 4 wealth building mistakes that business owns make – and some advice about how you can avoid them…
Your retirement could last 30 years or more
A male currently aged 65 has a future life expectancy of 19 years and for females currently aged 65 it’s 22 years. But these are just the averages and they are increasing steadily. As these trends continue, your retirement could stretch to three decades, or maybe even longer.
You shouldn’t rely on the age pension
The full single rate age pension only provides around 25% of average weekly male earnings. What’s more, qualifying for the age pension may become more difficult in the future, given our population is ageing.
You shouldn’t rely on an inheritance
Your parents may end up spending all their savings and may even need to downsize their home to help make ends meet. So, if you’re relying on an inheritance to fund your retirement, you could be disappointed.
You might not have enough super either
Many business owners have neglected their superannuation in preference for keeping working capital in the business. Even if you have been making some basic contributions, don’t assume that these will mean you have enough super to get you through your retirement. Research conducted by Rice Warner Actuaries revealed that Australia has a shortfall in super of close to $1 trillion, which means many Australians may not have enough super to fund their retirement.
Start planning now
Thankfully, with a bit of preparation, it’s possible to plan for a long and comfortable retirement. Strategies like salary sacrificing into super, making lump sum contributions (including from the proceeds of a business sale) are all smart strategies to consider to boost your super, and some of them generally have tax benefits too.
Educate yourself or get expert advice
The best way to see how your retirement savings are currently tracking, and find out what you could do now to increase your super for retirement, is to take some time to educate yourself or find an Adviser you can trust. They can help you set realistic goals and put a plan in place to achieve them.
I hope these insights help you build and protect your wealth for the future. And if you want more wealth building insights, grab Reuben’s really helpful FREE guide, The Five steps to Financial Wellbeing, right here: http://adaptwealth.com.au/
Wishing you much success,
Important information and disclaimer
Reuben Zelwer is a Certified Financial Planner® practitioner and the principal of Adapt Wealth Management which specialises in comprehensive financial advice for executives and business owners. www.adaptwealth.com.au
This article has been prepared by Reuben Zelwer of Adapt Wealth Management which is a Corporate Authorised Representative of Paragem Pty Ltd (AFSL 297276).
Any advice in this article is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information.
 Australian Bureau of Statistics, November 2013.
 Rice Warner Savings Gap at 30 June 2014.