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Old 11-18-2012, 12:29 AM
britsteroni britsteroni is offline
LawnSite Senior Member
Join Date: Feb 2007
Location: Missouri
Posts: 334
Originally Posted by Roger View Post
bristeroni, you probably have some good statistics about how well prepared people are for retirement. I've heard/read information from time to time, but cannot quote any of it here for sure. What I do recall, the preparedness is very poor. People are reaching 50, and have not yet begun to prepare. People are reach 60, 65, and have little retirement savings.
You could give people all the statistics in the world, and unfortunately most won't listen. One of the most staggering that I have found is that 75% of Americans nearing retirement age have less than $30,000 in their retirement accounts. Another statistic that is hard to imagine is that 70% of the population could not come up with $1,000 cash if given a month to do so!

From my own personal experience working with small business owners, the numbers might indeed be worse compared to the average W-2 worker. Most have little to nothing saved at all. Most live paycheck to paycheck. Most spend as much or more than the earnings they take from their business.

[/QUOTE]Investing in one's self is great, if your personal wealth generator is the best thing going. When talking about "putting the money into my business," remember all the thread on LS that speak to "how much to buy out another LCO." In general, buyers aren't willing to pay much for either accounts, or hard assets. I'm doubting this business is very high on the scale of "cashing out."[/QUOTE]

The above is really good advice that everyone should take note of. It is true that lawn care, like any other business, can be built into a self-sustaining operation that exists outside of the owner. But I would guess that would be less than 1% of the members on lawnsite.

So when you say "I'm investing myself, my biz, equipment, etc", how is that going to reap greater rewards for you and your family in the future? Most all equipment purchased in this business has little value after it has been used a few seasons. Accounts are difficult to sell for top dollar. Most lawn care operators do not own a shop or commercial real estate, so selling that is out. So when you boil it all down, most of the assets necessary to operate in this business sector have very little real value outside of the cash flow provided to the owner.

It is very admirable to build a large, sustainable lawn care operation. But even if that is your goal, you should still make it a priority to set aside some of your take home pay for a rainy day.
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