Ninety percent of Boomer business owners are confident in their ability to plan for their own business and personal financial needs, with few of them seeking regular consultation and guidance from professional advisers, according to a Hartford Financial Group, Inc. survey.
Nearly 60% of boomers say their work/life balance improved after going into business; however, 70% say they are surprised by the amount of time they spend on issues not directly related to their core business, such as legal, accounting and insurance matters.
When seeking advice, the most trusted adviser to Boomer business owners are accountants, as 51% of owners regularly turning to them for guidance and insights. Other sources the business owners look to are insurance advisers (32%), attorneys (31%), and financial planners (20%).
More than half (55%) reported an improvement in their personal financial picture after starting their business, compared to 25% who saw their financial situation get worse.
When financing their businesses, three-quarters of baby boomers tapped their personal savings to start their businesses, compared to 20% who used credit cards, and 16% who used bank financing.
Although using personal savings to launch a new business offers a number of financial benefits compared to using loans that can carry high interest rates, boomer business owners often face unique retirement challenges by putting their financial resources at risk later in life, Hartford said.
However, among those boomers for whom their business is their primary source of income, 70% are confident that they and their families will be able to live comfortably off the income earned from the business after they retire.
The survey was conducted in May 2007 and included 505 business owners with fewer than 127 employees.