If you’re a business owner or an entrepreneur, then you might prize nothing more than the business (or businesses) you have dedicated your life to founding and running. Aside from being the reason you get up in the morning and the craft that you dedicate yourself to, they might also be your eventual retirement plan. Selling off a business can certainly pave the way to a life of luxury, or at least relative comfort, for some people, but it’s also very risky to put all of your eggs in that one basket. Here, we’re going to look at how you can manage a safer and more organized approach to retiring.

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Define Your Goals First

Don’t just assume that you can figure out your retirement later. The clearer your plans are, the more effectively you can start planning. Think about what age you would like to retire, as well as how much you would like to keep in the pot, where you would like to live, and your financial needs. This can all help you get an idea of how much you should save up and, as a result, how much you might want to start putting away now. There are plenty of great retirement calculators that can help you do all the math behind the plans.

Start Early And Stay Consistent

Regardless of where you decide to put your retirement savings, it’s important that you start building them as soon as you can. Even if you have yet to decide on any retirement vehicles or investment strategies, you should set a portion of your income aside so that you’re able to put it all in at once. Time is the single most important factor in retirement planning, as the earlier you start, the easier it is to meet your goals. Consistency is the second most important factor. Whether you do it monthly or quarterly, you can ensure that you always have momentum, rather than leaving yourself more work in later life. Even if you’re not always able to put in as much as you would like, if you’re putting any money in, you’re moving in the right direction.

Choosing The Right Tax Vehicles

If you’re making decent money as a business owner, you may have access to more powerful retirement accounts than the typical employee, so make sure that you’re using them. Options like SEP IRAs, Solo 401(k)s, SIMPLE IRAs, and traditional or Roth IRAs all offer tax advantages and long-term growth potential. Which of these best works might depend on the nature of your income, and how much you’re able to contribute for yourself. Solo 401(k)s are better designed for self-employed people who are able to make relatively high contributions, for instance, while a SEP IRA is a bit more flexible.

Invest To Diversify Beyond Your Business

One of the problems of relying entirely on your business exit, or even on using business income to fund retirement savings alone, is the potential risk. While no one hopes it should happen, if your business were to collapse or your income were to suddenly shrink, it could leave you much more financially vulnerable. Diversifying through investment strategies allows you to better protect your financial future, ensuring that your potential wealth growth isn’t just tied to the performance of one market or sector. Investing can help you build an additional stream for long-term wealth, which in turn makes your own business’s success not as crucial to your personal financial safety. Don’t treat investing as a gamble, but understand the risks associated with it and choose options that can help you manage those risks effectively.

Manage Risk With Intention

Risk is something that most entrepreneurs are plenty familiar with and, indeed, may even have an innately high tolerance for. However, while you might be willing to risk it to support and grow a business idea that you believe in, you shouldn’t treat your retirement the same way. Pay attention to volatility in your retirement strategy and be sure to adjust to ensure that more of your money is going towards safer investments and savings when risk starts to build up a little too high. Protect your investments and savings by building emergency funds and carrying proper insurance, so that any financial hiccups along the way don’t see you raiding your retirement for short-term security.

Know Where Your Exit Strategy Plays A Role

Your exit strategy, such as when you finally get to sell your business, is not the only way to build your retirement fund, as we’ve shown. However, if you’ve worked hard to be the best business owner you can be and built a company (or companies) that are truly worth something, then your exit strategy should be part of that retirement strategy, too. Just be aware that flexibility is essential. Buyers can fall through, business valuations can change, and you might find that even a successful sale doesn’t leave quite as much in your pocket as you would think. Treat your exit plan as just one more pillar of your retirement strategy, not the entire structure it’s built on.

Consider Professional Retirement Strategies

As your financial assets grow more varied and complex, you may find that retirement also gets a little more tangled, as well. The fluctuating incomes that entrepreneurs often deal with, as well as unique tax considerations, can make it difficult to effectively plot out alone. By working with a financial planner who specializes in working with entrepreneurs, you can get the help you need in projecting your retirement needs, maximizing your tax advantages, and adapting your plans as time goes on, whether your business grows, is sold off, or pivots along the way. Planners can help ensure that you have a sound voice on your side for every financial decision you make in the future.

As mentioned, your business exit strategy can certainly help you retire more comfortably, but with a little planning and investment beyond it, you can enjoy a much greater quality of life and perhaps even have more to leave behind for your family.