Many IT consultancy owners have built their consultancies from scratch and have sacrificed many things in their lives to build their small business empires. It is time for them to pause and think about their retirement options. The word “retirement” does not mean “stop working” but planning now to have fixed income after 60 years and you can still work part time or do business part time.
IT consultancy owners can purchase a second home and rent to cover the mortgage payments and property taxes. They can take a 10-year fixed mortgage for a second home. If they buy a second home in a tourist destination like Miami, they can rent it through any online rental services. They can take the help of a property management company or leasing realtor and a maid service for upkeep of the property.
IT consultancy owners can buy commercial properties like Office spaces, strip malls and storage spaces. Strip malls dominated with ethnic restaurants, boutiques and grocery shops have a steady stream of income because it is easy to replace tenants. Storage spaces are gaining demand be cause they do not need to be managed daily. Capital preservation is important after the age of 50. Capital appreciation is important, but preservation and safety of capital is more important. After the predicted recession in first quarter of 2020 it is a good time to invest in real estate.
Owners can contribute to a traditional or Roth IRA plan. Owner can start withdrawals or payments from the plan when they are 59.5 years old.
As long as a small business owner earns $5280 per year, they are eligible for reduced social security benefit at the age of 62. An IT consultancy owner who is planning to retire should plan for a minimum of $3000 per month in social security and IRA benefits in additional to income from residential and commercial real estate. We can connect you with Registered Investment Advisers who can plan your IRA and Social Security retirement options.
The information in this website does not constitute investment advice or credit analysis. The information in this website is only for education purpose. We request you to use a Registered Investment Advisor before taking any financial decisions. We are not a bank, credit union, mortgage broker, real estate agent or a private lender. We are not affiliated with Small Business Administration. We are an online referral service.