Retirement Planning Part 2: Engaging on Active Business

The continuation of my first series of articles about retirement planning.  Based on the Dashboard of this website, this article earned the highest viewers both on the website and on The Good Asset Facebook page! For that, thank you for supporting this advocacy of spreading financial literacy to all Filipinos here and in abroad. 🙂

Now back on the topic.

I am in banking industry for more than a decade from now, and this idea of retirement planning will never be an advise from any bank or even from your favorite bank.

The idea is to build your business empire that will stand for ages then your sons and daughters will inherit the business. (Look for Yuchengcos, Sy Family, Ayalas, Gokongwei, and other family businesses)

Then why your favorite bank will not advise this retirement idea? Simply because they will not offer you their investment products.  They will not also offer you a business loan because it is only for existing and established businesses that eyeing for expansions.

But still why business venture is really good retirement plan?  Simple.  The higher risk you take, the larger return you can have.  But beware, the probability of failure within first year of business operation is 80%.

Why Too High of Chances to Fail in Business Ventures?

Many business ventures are founded by employees from corporate world that eyeing to free them from “corporate slavery”.  And being an employee and having too much employee mindset are also one of largest recipe of business failure.

Excluding the tight competition, saturation of chosen market, and lacking of experiences in business management.  Even several seasonal business owners are also failing on their business ventures.

These are the top reasons why most people chose not to have a business ventures.  I was one on the exact shoes who tried to have own business but ate me alive because of immaturity.

Then Why Business Venture is Best for Retirement Planning?

As I said earlier, the higher risk you take the higher return or gain you can have.   It is also same in financial investment.  If your money invested in pure equity, you are facing higher risks due to volatility in market.  Your chance of losing money in the shorter term is higher, but if goes on the risk will minimize and eventually will earn you more than conservative investments.  Here are some details:


  1. Business ventures or famously for tech guys are “start-ups” are best suited for early 20’s to 30’s.  Because age does matter in business.  Younger people are tend to take more risks than older people.
  2. Infinite income.  You as the business owner is the one who will dictate income and sales projection.
  3. Flexibility in money management.  Unlike in financial investment who handled by fund managers or brokers, you are the one who decide which market you will place your money.
  4. Can be fully auto-pilot.  Take this idea, you are earning P100,000.00 per month, managed by your trusted manager who do all business operations, hired agency to handle human resources, and you just simply busy in marketing your products.  All of these while you are in gym, having a spa, or simply in your own bed.
  5. Your ideas are limitless.  You can apply whatever ideas you have without any polices to be considered.


  1. Probability of failure is 80%.
  2. Need lots of experiences in business operations.  Getting government requirements are already big challenges.
  3. Business ideas are limitless but most market was already saturated.
  4. If you don’t like handling rejections, then stay being employee.
  5. Strong financial equation needed.

I placed the Business Venture as second on my list in retirement planning.  It’s one in my bucket lists.  At the same time the most challenging venture.

The next article will be come out soon.  Stay tuned!

“These are among definite events that we will have; to pay tax, to die, to live, and to retire.”

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Eleison Cruz

Financial Consultant. Personal Finance and Investment advocate. Author of The Good Asset, a blog that educates people in investments, financial literacy, and life insurance. Visit

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