Saving for tomorrow when today's cash is tight
By Jenny C. McCune • Bankrate.com

A small-business owner's main goal is running a profitable company. That often means there's little maneuverability when it comes to saving for retirement.

It's not easy, but it's not impossible.

Here are some tips on how to reconcile the conflicting financial goals of keeping your company thriving while saving for the day you can walk away.

Trim overhead to a minimum
This includes reducing expenses and staying away from long-term debt. This will help give you excess capital that can be stashed in a retirement fund without damaging your business. Plus, you won't be encumbered by loans or debts that will keep you tied to your business when you are ready to retire.

Save regularly, but less
Continue to save, just do so at a lower rate. Set aside a smaller amount each month.

Change your contribution schedule
If you don't have sufficient cash flow on a monthly basis to contribute to a retirement plan, you may still be able to save by changing how often you contribute. Instead, put money into your retirement account on a quarterly, semiannual or annual basis. One caution about this approach: Make sure you choose a retirement vehicle, such as a SEP IRA or Keogh plan, that allows you to make irregularly timed contributions in various amounts.

Wait until next year
Don't have the money this year? Wait until the economy picks up. Then increase your investments in flusher times to make up for your lack of contributions during an economic downturn.

Jenny C. McCune is a contributing editor based in Montana.

-- Updated: July 28, 2003