What's your retirement plan?
Many small business owners view their small business as their retirement vehicle, figuring that when the time comes, they'll sell the business and use the proceeds to fund a comfortable retirement.
Unfortunately, for many, that's just not the way it works. When the time comes, the business either can't be sold at all or can't be sold at anywhere near the price the small business owner needs to fund the kind of retirement he or she was hoping for.
To me, this kind of gamble is incomprehensible. Instead of putting all the eggs in one basket, why not take advantage of the tax shelter RRSPs provide now and do something that will help ensure the comfortable retirement we're all hoping for?
In fact, I think that RRSPs are such an important part of tax planning and preparing for retirement that I call them The Best Income Tax Deduction for Canadian Small Businesses. My linked article provides details on RRSP contribution limits and dates for the current tax year.
More on Retirement for Small Business Owners
- Consider the Tax Implications When You're Selling a Business
- Retirement Compensation Arrangements an Option for Small Businesses
- Book Review: The Canadian Small Business Owner's Guide to Financial Independence
- How to Close a Business in Canada
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