Retirement Planning for Entrepreneurs

One thing we’ve learned at Nest Financial, after talking to hundreds of founders and entrepreneurs, is that not all of them plan to work forever. While some entrepreneurs can’t imagine a time in their lives when they aren’t at least somehow involved in the day- to-day running of their business, there are plenty who look forward to spending their golden years traveling, enjoying their grandkids and volunteering.


For entrepreneurs, retirement planning can be a tricky topic—because if they choose the wrong plan or account, they can end up with fees, employee matching and penalties that hurt them in the long run.

When Choosing a Plan, Think Big Picture

The biggest issue facing many entrepreneurs is that certain retirement accounts, when chosen by the business owner to help them fund their retirement, can actually lock them into hefty contribution obligations for their qualified employees. And while having retirement plans in place that benefit employees can help attract in-demand professionals and reduce employee turnover, it can also get expensive if the entrepreneur isn’t careful. Whether you want to consider a SEP IRA, a Solo 401(k), a SIMPLE IRA or any other plan, make sure that you truly understand the potential contributions you may need to make on behalf of qualified employees.


Contributions aren’t the only possibly expensive consequence to choosing the wrong retirement account for your business. You also need to consider the expense and time involved in setting it up, administering it and managing it. Some plans have very high fees and lots of paperwork that might not be ideal for the way you run your company.


Yet another concern is whether the plan you choose is qualified under the Employee Retirement Income Security Act (ERISA). Those that are may be protected from creditors and may or may not be includable in bankruptcy property assessments.

Don’t Do It Alone

Your best tool when planning your retirement is a knowledgeable advisor who specializes in the issues impacting entrepreneurs and founders. They can help you determine which retirement account is the best, most economical fit for your personal goals and your business. They can also help you consider which types of accounts and policies will allow you penalty-free access to the funds you’re saving prior to retirement.


Actual fees may be higher or lower depending upon each client's specific situation and the products they select. Investors should note that the deductions of fees will impact overall account returns.  This communication is strictly intended for individuals residing in the state of Texas, California, Virginia, Maryland, and North Carolina. No offers may be made or accepted from any resident outside the specific state(s) referenced. Neither NEST Financial nor Union Capital Company, offers tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.


Securities offered through Union Capital Company, member FINRA/SIPC. Investment advisory services and insurance offered through NEST Financial LLC, 5323 Levander Loop, Austin, TX 78702 , 512-944-4882, which is not affiliated with Union Capital Company. Neither Union Capital Company nor its registered representatives, offer tax or legal advice.

5323 Lavender Loop | Austin, Texas 78702

512.944.4882  •