Is your business really your pension?

October 16, 2020

Many business owners will be reluctant to engage with a financial adviser, preferring to invest in their own business because ‘their business is their pension’.

The returns you might get from investing in your own business could be better than those from a well-diversified investment portfolio but you should remember the higher risk of running a private business. Also, you often have to commit not only capital but your own time and expertise to your own business.

The Coronavirus pandemic has highlighted the higher risks of owning a private business and we’ve all seen successful, profitable, and long-established businesses damaged, or even destroyed, by factors entirely outside of their control.

None of us know what is around the corner but the current situation shows why we work with our clients to ensure that they are ‘Financially Independent’, i.e. they have sufficient net wealth (pensions, investments, savings, property, etc.) outside of their businesses. So, should the worst happen, they are financially secure.

Being ‘Financial Independent’ isn’t a thing that many of us can achieve overnight but by working with a financial adviser you can start making steps towards achieving your own financial independence.