Total Financial Solutions President and CEO Arif Halaby is advising small business owners to take care of themselves and their families by planning for retirement.
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Halaby, a Certified Estate Planner, noted that whether you own a corporation or a sole proprietorship, there are retirement options to consider.
“If you don’t plan properly because you’re busy taking care of everything else … then you’re going to have wasted all the bad parts about being a self-employed person,” Halaby said. “My biggest concern though is you going through 20 years of self-employment or more and you end up at the end where the employees (are) great, they have a future, they planned properly … but who took care of you?”
Related: Total Financial Solutions President/CEO: Plan For 5 Sources Of Income In Retirement
The first thing Halaby advises small business owners to consider is setting aside 20 percent of every dollar that comes in.
This is because those who work for others typically put 10 percent of their paycheck into a retirement account like a 401(k), and then their employer matches a portion of that 10 percent.
“When you’re both of them, surprise, you have to put both,” Halaby said.
For the first month, Halaby recommends setting the money aside without putting it in an actual retirement account to get used to the habit, and then he noted “when the time is right,” to look into opening a Roth IRA.
Under current law, those who use a Roth IRA are able to contribute money that is then taxed at whatever their current tax rate is. As a result, when it’s time for them to withdraw their funds in retirement later, neither the principal nor the gains are taxed.
“You have to set aside 20 percent in your own bucket, because nobody else is going to take care of you,” Halaby said. “As a small business owner, I want you to do the right things to start putting a plan together so that you can have a retirement.”
At Total Financial Solutions, Halaby works with his clients to help them determine the best course of action for their retirement planning based on their unique, individualized circumstances.
Ed. Note: This article is a KHTS Community Spotlight based on the latest “Total Financial Solutions Safer Money Hour” radio show on KHTS AM-1220.
Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.
Total Financial Solutions, Inc.
24322 Main Street
Newhall, CA 91321
661-753-9683
800-990-7344