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10/10/2012 - Some business owners neglecting retirement preparation

Many business owners do not have a set retirement plan.

While entrepreneurs may have plans in place to guard against their business being adversely impacted by unexpected events, a considerable percentage of them have not established a retirement savings plan or a pension.

According to the report, which was conducted by The American College, 40% of small business owners do not have a retirement savings account.

Margie Lawless, senior vice president of BMO Harris Bank, indicated that it can be easy for some owners to neglect preparing for their futures, even though they may have provided for their place of business.

"It's important to have personal retirement savings outside of your business because the value of that business can fluctuate significantly over the years," said Lawless. "Additionally, having a retirement nest egg is important should the unexpected arise, such as a major health issue or needing to sell the business sooner than expected."

Finance expert Tina DiVito, of BMO's retirement division, added that while it's tempting to invest solely in business-oriented protections, such as business insurance, entrepreneurs owe it to themselves and their loved ones to have prepared for a financially sound retirement.

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