Retirement PlanningFor Business Owners and Partners.

I don’t want to retire…Q : Why should I?

As a Business Owner / Partner, Why should you plan ahead and save for your retirement and succession?

You have spent all your energies, risked all that you have earned and saved throughout your life, made many sacrifices in creating a business empire, and just when you need it the most, why should you retire and watch somebody else run the show?

Ans : You should plan for your retirement and succession, so that the business outlives you; to remind the world about your struggles and sacrifices, carrying your legacy to the future generations…( Eg: Bill Gates & Ratan Tata)

What is stopping me?• Fear, that my business would not be

managed by the successors efficiently.

• Fear of Financial insecurity in the future, when I have retired from the business, I would have to rely on the successors or on my family, for money to pursue my dreams, medical expenses, charity or for whatever purpose I please….

• The fear of loosing importance, within the family, organization, business community and society when I am not active in the business…

Why should I? when• My business has grown to be stable, and it will take care

of my expenses when I am old• No other investment is as good as my business!!!• Why should I trust someone else with my money?• Property is the best investment, and I have properties

which are currently appreciating in value and are providing a stable rental income....• The markets are very risky and many people have lost

money in the stock market!!• Retirement Planning is only for salaried individuals, and

not for me…

You should, because things can change..

• The world is changing very fast and many businesses

are being affected due to changes in technology,

government policies and market practices.

• If you are not in tune with the changing technology

and market practices, the future of your business could

be a big question mark.

• Think what happened to Kodak film rolls, Blackberry,

Floppy disk, Cassette Tapes….

You should, to protect your savings…

• When Business Owners / Partners borrow for business needs,

they have to provide a personal guarantee.

• Which means if the business is unable to repay, the lender can

call for the personal assets of the owner / partner; like the

homes they live in and or their personal savings for repayment

of the debt.

• If your business has setbacks due to the market conditions, you

also stand to lose your personal assets along with the business.

• So it is prudent to set up an offshore retirement plan, out of the

creditors reach to protect your retirement income….

Succession By Choice, Not Because No Other Choice….• As an individual grows older, his experience grows, but

the enthusiasm and the zeal diminishes along with the age of the business owner, which affects the business performance.• Retirement planning of a business owner also includes

identifying a suitable successor of the business, which provides an opportunity to the successor to actively involve himself in the business and sharpen his management skills, enabling him to manage the business effectively in case of death or critical illness of the business owner.

Think about Shari’a…..

• If Personal assets are not classified separately, and set aside in an offshore location, they will also be frozen along with other business assets, in the event of death of the business owner or any of the partners of the business.• The surviving family of the deceased or the surviving

partners of the business can access the funds, if anything is left after all creditors are paid.

Property Investments have limitations too….• Rent fetching Property Investments are no doubt a

good investment. I always recommend my clients to invest in properties which can provide a regular rental income.• In light of the increasing costs of owning and

maintaining a property in Dubai, It is recommended that the income from property investments cannot be solely relied upon for support during retirement.• When in need of cash for an emergency, a property

can be liquidated at a desired price quickly, hence it is advised to include investments which can easily liquidated in the event of emergency.

Peace of Mind…..

A prudent retirement plan will shield the business owner / partner, from all the uncertainties and provide him a secure future irrespective of the performance of his business. To know more about Retirement Planning for Business Owners / Partners, Please visit www.financialplanningindubai.com, or call Damodhar Mata on +97155-7701792.