It’s common for business owners to have a 401(k) retirement plan, but that may not always be the best case. It goes against conventional wisdom, but a 401(k) will never allow business owners financial freedom. By allocating company funds to a qualified retirement plan, there is more risk involved since the economy is unstable and businesses will be left without potential funding. Instead of putting money into a 401(k), business owners should learn the tax code and use their funds to search for new opportunities to make money.
- 401(k) programs and pensions were started by businesses to make it look as if they were caring.
- If you are a business owner, putting money in a qualified plan ties it up, meaning you can’t use it if you really need it for your business.
- Business owners should invest their money in their businesses to make them financially stronger.
“Everyone who got started with qualified plans when they rolled out was able to retire comfortably.”