Category: Retirement

February 5, 2015 The Female Entrepreneurs’ Guide to Planning for Retirement in 2015

Owning your own side business offers many perks… some financial, some less tangible. But, the benefits of entrepreneurship carry accompanying negative aspects. One of the most prevalent downsides is your potential savings for a retirement account. Many women in business do not take the time to set aside money for the future, as planning for retirement is simply not a priority.

Employers often offer retirement benefits, such as a 401(k). As an entrepreneur, no one will hand these benefits out to you. Even if you DO get benefits as a small business owner, there’s never any guarantee that they’ll pay out for you. It’s important to plan ahead and independently save money for your future retirement. If you’re wondering how to start your own business, you’ll want to learn about investment, too.

How Much Should Entrepreneurs Invest When Planning for Retirement?

In modern business articles, it’s estimated that you’ll need close to 80% of your income to live comfortably after you retire. That’s assuming you own a home and don’t need to worry about paying off a mortgage. A recent survey from MoneyTips estimates about 1 retiree in 100 withdraws about 5% of their retirement account every month.

So, how much do you need to save now for retirement?

  • Let’s say your total income (between full-time work and any other business you operate) is $50,000 annually.
  • If you divide that $50,000 by 5% (a “safe withdrawal rate” according to investment expert Jack Bogle), you’ll end up with about $1,000,000.

That means you’ll want to start your retirement with $1,000,000 invested if you want to maintain your current lifestyle. Seem like a lot of money? well, this is a good estimation of what you need to save now when planning for retirement.

Check Out ‘How Much I Need to Save for Retirement’ Calculator

Featured Image: Entrepreneurs must be responsible for saving for their own retirement. Use these planning for retirement tips to help. Image Source: Borderless News And Views

Continue to Part 2

November 12, 2014 V-Wise Encourages Women Veterans to Become Independent Business Owners

Becoming a female entrepreneur requires creativity in order to get your new business venture off the ground. One group of women tend to have a hard time becoming independent business owners, and that’s retired female veterans. Why? Well, women who retire from active military duty have spent their careers working in very strict environments, under defined chains of command.

But, V-WISE (Veteran Women Igniting the Spirit of Entrepreneurship), offers a program to help these women transition from a career in the military to being successful independent business owners. V-WISE not only helps retired women vets, but their spouses as well.

Featured Image: V-Wise Helps Women Veterans Become Independent Business Owners. Image Source: Trends Photos

What is V-WISE All About?

There are three main phases to the V-WISE program for women vets who want to become independent business owners:

Phase One: 

    Participants endure a 15-day online learning course. It teaches these women vets business language and helps them develop their business ideas for the market. V-WISE also helps them create an effective business plan and network with other independent business owners.

  1. Phase Two: The future independent business owners attend a 3-day conference, where they engage with experts. This networking forum helps the women vets in the V-WISE program learn subjects related to running a business successfully, such as social media, business finance and business marketing.
  2. Phase Three: This is what V-WISE calls the Implementation Stage. Participants put the finishing touches on their business plans to become independent business owners, and follow-up support is provided. These women vets get access to business mentors and resources for support and advice.

Challenges of Women Vets Hoping to Become Independent Business Owners

After retiring from military service, women vets face an influx of challenges. In many cases, one of those challenges is figuring out how to get back into the job market at their ages, most being over 40 at time of retirement. Some prefer to take their retirement money and savings accounts, and invest them into becoming independent business owners. V-WISE helps to make this dream come true.

Are you a woman veteran hoping to start your own business soon? Or, have you already started your business venture and are looking for effective ways to bring in more business? Online marketing is the key successfully reaching your target market. Through online marketing, you’ll reach many more prospects at a much faster rate than with traditional marketing techniques.

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Ready to get started marketing your woman-owned business?

Contact The Entre Marketing Group to order your customized online marketing package today.

October 27, 2014 Many Women Retiring are Unable to Live Comfortably Due to Massive Debt

Happy retirement is only possible when you’re financially secure enough to do what you want to do. For many women retiring today, this can be ruined by massive debt. Each year, thousands of retiring women are finding this to be major issues as they say goodbye to their regular paychecks forever.

Stats on Women Retiring with Mortgages

Consumer Financial Protection Bureau (CFPB) revealed the following about homeowners over 65 years old who have mortgages:

  • 22% has mortgages in 2001
  • 30% has mortgages in 2011

For homeowners 75 year old and above, the rate now stands at 21.2%. This is triple the amount of 75 year old homeowners with mortgages back in 2001, which was only 8.4%. There was a time when typically, women retiring no longer owed on their homes.

Janet Taylor, successful businesswoman and AARP’s Life Re-Imagined thought leader and psychiatrist gives her take on women retiring. She agrees that retired people tend to suffer from chronic stress because of debt. This is not the way to retire happy.

Dr. Janet Taylor helps women retiring prepare for their futures.
Dr. Janet Taylor helps women retiring prepare for their futures.
Image Source: The Root

3 Debts Women Retiring Have to Deal With These Days

These are the three main debts women retiring are left to struggle with once their careers end:

  1. Mortgage Debt: Women retiring often wonder whether they can pay off their mortgages using their retirement savings. There is no definite answer because factors such as tax brackets, individual assets and size of mortgage payments need to be considered. Some believe that clearing up mortgage debt makes is a necessary part of happy retirement.
  2. Credit Card Debt: The number of women retiring with an abundance of credit card debt has really increased since 2001. Experts advice individuals heading for retirement to keep credit card debt low. Retired women surviving on fixed incomes end up paying high non-deductible interest rates, which is a waste of money.
  3. Student Loan Debt: The number of women retirees compelled to pay the cost of educating their children and grandchildren has increased. This includes cases where parents and grandparents take out loans in order to help their financially strapped offspring pay for college. The issue is, some loans compel parents and grandparents to pay for the rest of their lives, especially if they take out interest-only loans to help.

Lessons to be Learned by Women Retiring

Many say that Americans are fat because they eat a lot. Essentially, this means they spend more than most other societies. And, in order to sustain this “fat” lifestyle, many Americans have to borrow more.

This bad habit has cost the US its supremacy as a global economic powerhouse. Many working women, female entrepreneurs and women in business are jeopardizing their financial futures because of this habit. It’s better to put an end to it long before you retire.

Social security is on the decline. The US Government will not be able to meet its financial obligations to women retiring who have been working jobs their entire adult lives. Those who have prepared early enough and braced themselves for this calamity will be safe.

How to Prepare for Retirement as a Career Woman

One of the best ways to women retiring to prepare financially is by starting lucrative side businesses of their own. All it takes is a brilliant idea, hard work, dedication and the determination to put your efforts and energy into your own business venture.

Ready to get started? Contact The Entre Marketing Group to help you start to get your new business venture off the ground today.