Building Retirement Wealth Outside the Business: A Strategic Guide for Entrepreneurs

For many business owners, the enterprise itself represents the bulk of personal net worth. While reinvesting profits can fuel growth, relying solely on the business for retirement can expose owners to unnecessary risk. Building retirement wealth outside the business is a strategic imperative—one that ensures financial independence, tax efficiency, and long-term stability. IRS Retirement plans for self-employed people

Why Diversifying Retirement Wealth Matters

Entrepreneurs often face liquidity challenges when exiting their business. Market conditions, valuation uncertainty, and succession complexities can delay or diminish expected payouts. Establishing external retirement assets mitigates these risks and provides flexibility regardless of business performance. IRS Retirement plans

Key Advantages:

• Liquidity: Access to funds without selling or leveraging the business.

• Tax Efficiency: Use of tax-advantaged accounts to defer or eliminate taxes.

• Risk Reduction: Diversification across asset classes reduces exposure to business-specific volatility.

• Succession Flexibility: Enables owners to exit on their terms, not under financial pressure.

Retirement Planning Vehicles for Business Owners

Selecting the right retirement accounts depends on income level, business structure, and long-term goals. Below are several options designed to help entrepreneurs build wealth outside their enterprise:

Account Type	Contribution Limit (2025)	Tax Treatment	Best For
Solo 401(k)	Up to $81,250 (with catch-up)	Tax-deferred or Roth	Owners with no employees
SEP IRA	Up to $70,000, or 25% of eligible employee compensation	Tax-deferred	Self-employed or small business owners
Defined Benefit Plan	Varies (can exceed $100,000)	Tax-deferred	High-income earners seeking large deductions
Roth IRA	$8,000 (with catch-up)	Tax-free withdrawals	Those seeking tax-free retirement income
Brokerage Account	No limit	Taxable	Flexible investing with no restrictions

Note: Contribution limits are subject to IRS updates and eligibility requirements.

Strategic Investment Considerations

Building retirement wealth outside the business requires thoughtful asset allocation and tax coordination. Our advisors help clients:

• Diversify Holdings: Balance growth and income across equities, fixed income, and alternative investments.

• Optimize Tax Location: Place tax-efficient assets in taxable accounts and tax-inefficient assets in retirement accounts.

• Plan for Liquidity Events: Structure portfolios to accommodate future business sales or transitions.

How Our Firm Supports Business Owners

Our wealth management team specializes in guiding entrepreneurs through the complexities of retirement planning with a focus on:

• Customized Portfolio Design: Tailored to your risk tolerance, timeline, and business exposure.

• Integrated Tax Strategy: Coordination with your CPA to maximize deductions and minimize tax drag.

• Succession & Exit Planning: Preparing for ownership transitions with financial clarity.

• Ongoing Monitoring: Adjusting strategies as your business and personal goals evolve.

Take the Next Step

Building retirement wealth outside your business is not a luxury—it’s a necessity for long-term financial independence. Whether you're preparing for a future exit, seeking tax efficiency, or simply diversifying your assets, our team is here to help you create a resilient retirement strategy.

Schedule a confidential consultation today to explore how our wealth management solutions can support your entrepreneurial journey and secure your financial future.

Your goals, our strategies. Together, let’s make your goals happen.

Rigden Capital Strategies is a trusted partner for individuals seeking wealth management and financial planning. Our fee-only fiduciary approach ensures that every recommendation is made with our clients' best interests in mind. We develop customized financial plans, combining strategic investment management with proactive tax and retirement planning to help clients achieve their long-term financial goals.

Disclosure: This content is for informational and educational purposes only and should not be interpreted as financial, legal, or tax advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information provided. Investment decisions should be based on individual circumstances, and we recommend consulting a qualified professional before implementing any financial, legal, or tax strategies. Past performance is not indicative of future results, and all investments carry risks, including potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions. Investors should carefully consider their risk tolerance, investment objectives, and financial circumstances before making investment decisions.

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