Peter Falstad

Owning a business or leading a busy professional career offers opportunity and independence, but it also creates blind spots when it comes to personal financial planning. Many business owners and executives in Bloomington and the surrounding communities are so focused on running the business that their own retirement strategy becomes an afterthought. Over time, small oversights can grow into major obstacles.

 

Here are some of the retirement planning challenges we commonly help business owners navigate, and why addressing them early makes such a meaningful difference.

 

The first is relying too heavily on the business itself as the retirement plan. It is common for owners to assume they will sell the business someday and use the proceeds to fund retirement. While this may work for some, it creates risk if the timing or valuation does not unfold as expected. A stronger strategy spreads your wealth across multiple areas, including personal investments that grow independently of the business.

 

The second challenge involves inconsistent saving patterns. Owners often put money back into operations, leaving little room for personal retirement contributions during certain years. Then, when profitability rises, they try to make up for lost time. Structured planning helps create a predictable saving strategy that is realistic for the business and supports long term retirement goals. It also ensures you are taking full advantage of options like owner 401k plans or profit sharing opportunities.

 

The third challenge is taxation. Without careful planning, business income, stock compensation, or large liquidity events can lead to higher tax burdens that reduce retirement assets. Coordinating with tax professionals and aligning investment strategies with your business structure can significantly improve long term outcomes. Executives also face decisions around stock options, deferred compensation, and concentrated stock holdings that require careful timing and diversification.

 

All of these challenges share one theme. They rarely become visible until someone slows down long enough to take inventory of their financial picture. With the right guidance, business owners can turn complexity into clarity. A retirement plan that accounts for both the business and personal financial life gives owners something priceless: confidence that the years ahead will reflect the work they have put in for decades.