The Ultimate Retirement Guide for Small Business Owners: Build Wealth Without Burning Out
Let’s Get Real—You Deserve to Retire Too
If you're running a business, chances are retirement feels more like a fantasy than a plan.
"Retire? With what time? With what money?"
You’re not alone. Most small business owners are so focused on growth, payroll, taxes, and simply keeping the lights on that retirement slips down the list. But here’s the truth:
You are your most valuable asset—and you deserve a retirement plan just as much as any corporate employee.
This guide will show you how to build a retirement strategy that feels doable, tax-smart, and tailored for business owners like you—whether you’re just starting out or looking to exit soon.
Step 1: Define Your Vision of Retirement
Forget what you’ve been told about retirement being a rocking chair and a golf cart. What does freedom look like for you?
Taking a year to travel?
Spending more time with family?
Pivoting into advisory or part-time passion projects?
This is your North Star. Once you’re clear on the lifestyle you want, we can reverse-engineer the financial strategy to get there.
Step 2: Pick the Right Retirement Account
There’s no one-size-fits-all. Here are the top retirement accounts that work well for business owners:
Solo 401(k) – A top pick for solopreneurs
If you’re self-employed with no full-time employees (other than your spouse), the Solo 401(k) is a goldmine. Why?
You can contribute as both the employee and employer (up to $69,000 in 2024)
Choose between pre-tax and Roth contributions
Great for maximizing tax deductions
✅ Want to DIY? The Self-Employed 401(k from Fidelity and the Schwab Solo 401(k) are two of the most popular, low-cost options out there. Both offer access to solid investments and are relatively easy to manage once set up.
SEP IRA – Flexible and easy to manage
Contribute up to 25% of your compensation
Contributions are tax-deductible
Ideal if you want to keep things simple and don’t have full-time employees
SIMPLE IRA – For small teams
Works for businesses with fewer than 100 employees
Employer is required to contribute (match or fixed %)
Great if you want to offer a retirement benefit to your team without 401(k)-level admin
Defined Benefit Plan – Max it out late-career
Think of this as a personal pension plan
Contributions can exceed $100K per year depending on your age and income
Best for high-income earners who want to catch up fast before exiting the business
Roth IRA – Tax-free retirement income
After-tax contributions
No taxes on withdrawals in retirement
Can be layered on top of other plans for long-term flexibility
Step 3: Automate Contributions (So You Actually Save)
You won’t build wealth if you’re saving “whatever’s left” at the end of the month.
Set a fixed % of your owner pay or net profit to transfer monthly
Use automations through your bank or brokerage account
Revisit quarterly and increase your contributions when you grow
Make Future You non-negotiable.
Step 4: Your Business Isn’t Your Retirement Plan
This is a hard one. Many business owners assume their exit or sale will fund their retirement. But that’s risky:
Businesses don’t always sell on your timeline
Market downturns can cut your valuation in half
Health issues or burnout may force an early exit
Instead, let’s treat your business as one part of your wealth—not the whole pie. You want liquid, diversified investments you can access no matter what happens.
Step 5: Consider Your Team
If you have employees, offering retirement plans doesn’t just help them—it helps you:
Attract and retain better talent
Build team loyalty
Save on taxes with employer contributions
Start simple. A SIMPLE IRA or a Safe Harbor 401(k) are often great starting points. Platforms like Gusto or Guideline make plan setup and admin easier than ever.
Step 6: Maximize Your Strategy with These Advanced Moves
Once you’ve got the basics down, here’s how to take it to the next level:
✅ Profit Sharing Plan
Add a flexible contribution plan tied to company performance
✅ Cash Balance Plan
Great for high-income earners wanting a defined benefit model + large contributions
✅ Tax Planning Layer
Use your retirement plan in tandem with an S Corp, HSA, or real estate investments to create multiple streams of tax-optimized income
Bonus: Provider Comparison – Fidelity vs. Schwab for Solo 401(k)
Feature
Fidelity Self-Employed 401(k)
Schwab Solo 401(k)
Fees
No setup or admin fees
No setup or admin fees
Investment Options
Full range of mutual funds, ETFs, and stocks
Broad mix of index funds and low-cost ETFs
Application
Paper-based
Paper-based
Support
Strong online tools + live help
Excellent customer service + research tools
📌 Both are trusted options. Choose based on where you already invest or which interface you prefer.
Your 7-Step Retirement Checklist
Retirement Is the Ultimate Freedom Plan
You didn’t build your business to work forever. You built it for freedom, impact, and legacy.
Retirement isn’t the end. It’s the reward—and with a solid plan, it can be just as intentional and powerful as your business journey.
Start where you are. Set your vision. Automate your wealth. The future you deserve is built from the choices you make today.
💡 Want help mapping out your money management plan for your retirement? Grab our Free Business Owner Retirement Toolkit with plan comparisons, checklists, and worksheets to take the guesswork out of building wealth.
Let’s make sure you retire like the CEO you are.
