What are you waiting for? Invest in your retirement now

As a small business owner, you pay close attention to your firm’s finances and how to support growth. But do you neglect your financial future? Investing in your retirement should be at the forefront of your mind, right there with the other financial data you consider. If you haven’t started planning for your retirement, here are some things to consider.

The investment landscape

Traditional retirement investment options, such as stocks, bonds and mutual funds, still exist and can make sense for your portfolio. However, there is no profit until you sell, and you will usually pay capital gains tax. These are all paper earnings until you sell.

With this reality in mind, the investment landscape looks different today than in the past. Many of the best companies people invest in are part of the ever-fluctuating tech industry.


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While you can invest in blue chip companies, it’s wise to consider the alternatives. You can move to a higher level of risk as you go. You will end up with a more stable portfolio with higher growth potential because the investments are more diversified.

Dividends as additional income

One option you shouldn’t ignore is dividends, which are available from many companies. If you had enough shares of a stock that paid them a fair amount, you wouldn’t have to worry about selling the stock. You can collect your dividend checks monthly or annually and add to your social security, cash savings, real estate income, and more. Just keep reinvesting your dividends until you need additional support.

digital currency

Cryptocurrencies include choices such as Bitcoin, Ethereum, and Dogecoin. They find more favor as they are decentralized and secured with cryptography. Most are built on blockchain. This means they’re harder to counterfeit or make accounting mistakes, and it’s easy to transfer funds securely. Thus, more and more organizations accept them. Amazon, for example, is developing a cryptocurrency and blockchain strategy that could allow people to use digital cash on the platform.1 Banks are also embracing cryptocurrency.2

The big concern with cryptocurrency, however, is its volatility. In May 2021, for example, Bitcoin fell around 30%.3 Many different things can move the value, such as major industry players saying they won’t be involved anymore or people still don’t understand the future of cryptocurrency.4

In general, a good rule of thumb is that no more than 5% of your portfolio should be in cryptocurrency. You can go through brokerages and get cryptocurrency as part of mutual funds. Then hold those funds for the long term to reduce risk.

Additional options to fit every personality and risk level

If you’re not interested in dividends or cryptocurrencies, there are other less crowded investment options. These include collectibles, fine art, self-storage units, wine, peer-to-peer lending, rental properties and other real estate, and crowdfunding.5 Some of these options, such as buying a vacation rental home, require quite a large sum of money. But others, like crowdfunding, allow people to get in with just a few dollars and don’t require hiring a professional.

Whatever the investment, set up your accounts now

Investing in your retirement is not something you should wait for, and as a small business owner with many unknowns on your plate, having some options in place can give you peace of mind. Choose the investment paths that interest you now to ensure your financial future is on stable ground.


Editor’s note: This article originally appeared in the March 2022 print edition of Dental economy magazine. Dentists in North America can take advantage of a free print subscription. Register here.


The references

  1. Cag D. Amazon will create a roadmap for blockchain and digital currency. FinTech. November 1, 2021. https://fintechmagazine.com/financial-services-finserv/amazon-build-blockchain-and-digital-currency-roadmap
  2. Flitter E. Banks tried to kill crypto and failed. Now they are embracing it (slowly). The New York Times. https://www.nytimes.com/2021/11/01/business/banks-crypto-bitcoin.html
  3. Browne R, Kharpal A. Bitcoin plunges 30% to $30,000 at one point in the wild session, recovers somewhat to $38,000. CNBC. May 18, 2021. https://www.cnbc.com/2021/05/19/bitcoin-btc-price-plunges-but-bottom-could-be-near-.html
  4. Reiff N. Why is Bitcoin volatile? Investopedia. Updated January 4, 2022. https://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp
  5. Frankel L. 16 Weird Things You Probably Didn’t Know You Could Invest In [2022]. Finance Buzz. Updated August 31, 2021. https://financebuzz.com/strange-things-to-invest-in

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