What is a small business retirement plan?

Your coaches explain some key benefits of investing your savings in a retirement plan.

LuisIf you’re a small business owner, do you have a plan for retiring someday?

 

MichaelDoes your business have employees? When people choose where they’re going to work, or whether they’ll stay with the same company for many years, most take a good look at what kind of retirement plan the company offers.

A group of male and female small business owners.

LuisA retirement plan is special account where you can set aside some of the money you earn as savings for your non-working years. Then in most cases, you invest this money with the goal of increasing the total over time.

MichaelWhether your business has employees or not, give some serious thought to setting up a company retirement plan. There are several kinds offering different features and benefits. Check with your local bank. Many offer retirement plan experts who can advise you.

Note: The major advantage of most retirement accounts is that you don’t have to pay taxes on the money you invest until you withdraw the funds at retirement age. This is known as tax-deferred growth and it can help you save a lot more money for retirement than you might otherwise.

Click the Next button to learn about four common retirement plans.