Your Family’s Needs
Personal planning has a strong presence in the business life cycle. When planning for the needs of your business, you can’t overlook the personal planning needs of your family.
Northwestern Mutual’s personal financial guidance section provides a myriad of life events that may be part of the personal planning needs for your family:
Your task as a business owner is to incorporate these personal planning goals with your overall financial planning through risk management, wealth accumulation and wealth preservation and distribution.
Starting with the of basics of providing life insurance and disability insurance to protect your family’s financial security will give you a foundation to build on.
When you’re ready to retire, will you be able to? Do you know how much income you’ll need in retirement?
Do you know how you’ll fund your personal retirement taking into account the retirement funding needs of your employees? Should you be funding your retirement through your business?
Estimate your projected retirement income needs using the following process:
- Start with current annual income.
- Subtract expenses that will go away in retirement (such as contributions to savings, mortgage payments, commuting expenses, etc.).
- Add anticipated additional expenses (such as travel, entertainment, insurance, etc.).
- Make adjustments for inflation and taxes.
Use insurance as a foundation to manage key risks: Disability Insurance, Health Insurance, Long Term Care Insurance and Life Insurance.
Create a comprehensive retirement income plan using investments and annuities and know where your retirement income will come from.
Your business type may be a determining factor in how you plan for your retirement along with how you fund it.
Make retirement planning a lifetime process by starting early, seeking expert guidance and planning for your transition to retirement.