Is your Business your Super?

Are you planning on using your business to fund your retirement?

Many business owners plan to use their business to fund their retirement as they feel more in control than their super.  

However, this may not be the smartest move.

Not when you consider the number of Australian businesses that cease trading each year - one in every eight.

And it’s not just young businesses, it’s mature ones too.

We live in an age of unprecedented change, where businesses which were thriving yesterday can find themselves struggling today – threatened by technology, more agile newcomers or the owners not being able to run the business. Keeping pace with the rapidly changing technological landscape requires so much time and knowledge, not everyone can keep up as newcomers are entering markets faster than ever before.

If something were to happen to your business, or if your business just isn’t successful enough to provide for your retirement – and that’s often the way things turn out – you’ll need something substantial to fallback on. This is the reason why your business and super should be considered as separate.

Instead of having all your eggs in one basket, you can easily build a substantial fallback - which is in parallel to your business but separate from it. It can be done, but must be done consciously if you run your own business. Being employed elsewhere, the superannuation contributions made by an employer over the course of a career are likely to build to be substantial, but if you’re on your own in business, it’s all up to you.

Considering them proactively as seperate things, no matter what happens to your business you can be sure that all the hard work, long hours, stress and stain on yourself and your family is worth it.  

If you are looking for tailored and specific advice regarding your business and super (including Self-Managed Super Funds), then please don’t hesitate to contact the Addept Wealth team today!