America's small-business owners are wealth builders, driving GDP and job growth. But when it comes to their personal finances, they get low marks in asset diversification and retirement planning. That's because the vast majority of their invested wealth is tied up in their businesses, a tactic that is shortchanging their personal financial futures. These findings were revealed in the first CNBC/FPA Small Business and Financial Planning Survey, released today.
The survey, conducted in conjunction with the Financial Planning Association, sampled 178 financial advisors nationwide that service small-business clients ages 35 to 70.
A whopping 70 percent of small-business owners' wealth is invested in their business, and only 30 percent outside their firms, according to the survey. Assets they are investing in are stocks (89 percent), real estate (64 percent), bonds (63 percent), commodities (19 percent) and other sectors.