More Self-Employed Individuals Need to Make a Financial Plan

Statistics Canada found out that 74% of self-employed Canadians are financially preparing for retirement, while 85% of paid employees are making financial arrangements for retirement. Some of this can be attributed to the fact that the self-employed individuals’ time is consumed with running their business.

Inadequate planning for retirement can have a negative impact on business owners because the planning tends to be complex. Proper planning requires that the owner understand the business as it is now and how it is likely to be at retirement.

A complete plan involves investment planning, estate planning, and risk management, and then that plan is continually monitored and adapted when it needs to be.

See Kim Inglis, Small Business Owners Need to Focus on Financial Planning, Financial Post, June 23, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.