If you are self-employed or a small business owner, chances are you focus much of your time on running your business, making it easy to overlook personal finances. Monitoring your personal goals is just as important as your business goals.
“Business owners are more likely to invest solely in their business, and sometimes this is necessary in order to keep the business going,” says Jason Round, head of Financial Planning Support at RBC Financial Planning. “While it is important to have a strong focus on your financial goals for your business, it is just as important to put the same care and attention into your personal finances.”
Round offers personal investing strategies for business owners:
• Registered Retirement Savings Plan (RRSP) – an RRSP can play a key role in diversifying your net worth and provide you with exposure to different business sectors to minimize your investment risk.
• Tax-Free Savings Account (TFSA) – is an important investment vehicle to save money for personal and business needs and minimize taxes whether for short or long-term goals.
• Succession planning – a good succession plan will help you to think about the market value of your business, making it easier to exit the business when you are ready.
For more information, please visit RBC Financial Planning