BLOG: saving for a rainy day, and for your children

FrankvanderVelde DGA kantoor

20 februari 2015
Guest column by Frank van der Velde, director of DGA kantoor.

This company offers directors/majority shareholders (DGAs) of small and medium-sized enterprises help with sustainable business premises, such as those offered as part of Het Vizier Business Park’s De 6 Jagers project.


The last thing you want when you finally retire are financial problems. The children also have to be left with something when you are no longer around. But it is possible to be comfortably off, even for entrepreneurs, especially for entrepreneurs!


Take control of your pension accrual
New legislation has dramatically changed the process of managing your own pension accrual. What led to a tax rebate in the past can now cause a major headache if there is no capital available for your pension payments. If there is capital, there is a big chance that current interest rates have led to insufficient financial cover. You are no longer in a position to pay a dividend.

We have learned from experience that many entrepreneurs have suspended their pension build-up. Accountants and financial advisers will hesitate to recommend this kind of pension accrual and will be looking into the alternatives with you.

Of course, you can make a traditional choice for saving, investment or an annuity scheme. There is, however, a fourth choice available which outperforms all of these: investing in your own sustainable business premises.


InvSaving for a rainy dayesting is more interesting than saving
At the moment, saving is hardly worth the bother because interest rates are at an all-time low. Borrowing money has become a good deal more interesting. The combination of investment in sustainable capital assets and partial green financing will save you a lot of money in the short term. It will as a rule cost less than monthly rental. What’s more, you are investing in the long term and creating more capital and reserves.


Buildings are more concrete than shares
If you invest in your own sustainable company building, you are in control. You know the building you have bought and you know the tax and financial benefits. You are up to date with the interest rates and, should you sell the property, sustainable premises are worth more. Investing in shares remains a risk. You have no influence on stock-market prices and anyway last year’s yield was negligible.


Owning your own business premises offers more flexibility than an annuity
You can always sell your sustainable business premises. This means, for example, that you can free up your assets so they are available for your dependants after your death. Annuities, on the other hand, only become available


Further information about De 6 Jagers project, sustainable office villas for DGAs at Het Vizier.

Frank’s blog of februari 2015 ‘Why invest in a sustainable office building?’