Entrepreneurs have unique financial needs. They’re also exposed to special risks. Are you building all the wealth you can and securing it for retirement or an unexpected rainy day?
Answer True (T) or False (F) to each of the following statements. I have:
1. Reduced my exposure to the ebb and flow of my business by diversifying my investment portfolio.
2. Purchased or seriously considered insurance options such as segregated funds or “key man” coverage.
3. Planned a tax-efficient exit from my business.
4. Reduced my personal exposure in the event of business bankruptcy through incorporation or spousal ownership of equity and capital.
5. Taken consistent advantage of tax-saving vehicles available to me, such as RRSPs and RESPs.
6. Engaged the services of a certified financial planner to review my personal finances and provide advice.
7. Avoided or withdrawn personal guarantees of business loans.
8. Paid myself adequate salary, commensurate with my job’s demands.
9. Considered entrepreneur-appropriate retirement savings vehicles such as an individual pension plan or retirement compensation arrangement.
10. Instituted a system of automatic payroll deductions to fund my savings and retirement accounts.
Give yourself one point for each “True” response. The higher you score, the more secure your finances.