Email

Why pet sitters should start planning for retirement

As a professional pet sitter and business owner, do you have a game plan for retirement? What money will you live off of when you transition to semi-retirement or say farewell to the industry?

While your financial future may be a stressful topic, you owe it to yourself to plan for retirement. You work so hard to care for your clients’ pets and, if you have them, your staff sitters. You deserve to reap the benefits of your hard work in the years to come. And with a little foresight, you can do just that.

During PSI’s August 2017 free member webinar, Julie Johnson of Transamerica Financial Advisors, Inc. delivered a presentation on “What Pet Sitters Should Know About Planning for Retirement.” Attendees gained insight on why planning for retirement is important and some of the common retirement plans for small businesses.

PSI members, you can access the free on-demand recording of “What Pet Sitters Should Know About Planning for Retirement” online.

Johnson shared some eye-opening statistics in the webinar: As of 2017, one in four retirees will live to age 90, and one in three seniors in the U.S. has no long-term savings at all. The fastest growing group of bankruptcy filers in America is retirees, Johnson said.

When sharing these statistics, Johnson said she was not trying to scare pet sitters, but to help listeners avoid becoming one of these statistics.

Johnson broke down three myths that prevent business owners from setting up a retirement plan:

1. “My business will subsidize my retirement.” Many pet sitters plan to eventually sell their businesses, and they think that this money will subsidize their retirement. But relying on a single venture is risky, Johnson said. There are many factors that can derail your plans: unexpected hardship, such as an illness that has a detrimental effect on your business; economic downturn; or a decrease in the market value of your business.

2. “I can’t afford a plan.” Johnson said today’s retirement plans are affordable, flexible and simple to navigate. Whereas 20 to 30 years ago it was more tedious to set up and manage a plan, now technology and the internet have simplified the process and provided more options to the investor.

3. “Employees want money, not benefits.” Some business owners think that their employees are interested in higher paychecks instead of benefits such as retirement-plan contributions. But Johnson said employees are increasingly concerned about benefits, not just the actual paycheck. The millennial generation in particular has different ideas about the meaning of their work and how they are paid for it.

There are a lot of benefits to saving for retirement—current tax benefits, potential for accelerated growth of savings, control over how your money is invested—and a variety of retirement plan options for you as a small-business owner. A good financial planner can help you as you consider how to start saving for retirement.

Bonus tip: Be sure to take a close look at any retirement investment company you plan to work with. Johnson shared some tips on what to look for in a retirement plan provider:

  • Make sure you find a plan provider that can take care of your needs. (For example, can you look at your account online any time? Can you talk to a person on the phone? Is it easy to put together and administer your plan?)
  • Make sure you have a range of investments to choose from.
  • Make sure you choose a plan provider who has experience.

Many resources are available online to help you learn more about planning for retirement:

For more tips and insight, be sure to listen to Johnson’s webinar, “What Pet Sitters Should Know About Planning for Retirement.”

Comments

No comments.