Archive for May, 2010

Planning for Retirement

As a business owner, or entrepreneur, the last thing on your mind is retirement. A business owner is usually too busy, and has too many things on his or her plate to even begin thinking of doing nothing someday, especially if that day seems so far away. Retirement? No way, who has time for that!

Even so, the best time to start planning for retirement is today. Specifically, right this minute. It’s never too soon to start planning for retirement. The most important thing you can do is start a retirement account. As a self-employed business owner you have four options that you can use starting today to put away money now for your retirement: a solo 401(k), a Roth solo 401(k), a SEP-IRA, and a Simple IRA.

Solo 401(k)

In order to open a Solo 401(k) account you must have taxable compensation, i.e. income. There is no income limit for contributions. With a Solo 401(k), a person can set aside up to $49,000 USD.

Roth Solo 401(k)

The primary difference between a Solo 401(k), and a Roth Solo 401(k), is the tax status of the funds making up the contribution. A Solo 401(k) is funded by pre-tax dollars. This means that you can deduct the contribution amount from your taxes in the year of that the contribution was made. A Roth Solo 401(k) in contrast is funded with after-tax dollars. The amount contributed into a Roth Solo 401(k) is not tax deductible, because the taxes for that money have already been paid. The advantage of a Roth Solo 401(k) is that the funds can accumulate without worrying about tax consequences when the money is taken out once in retirement.

SEP-IRA

This type of account is also funded with pre-tax dollars. An SEP-IRA can be rolled over into a Solo 401(k) for greater tax advantages and enhanced benefits.

SIMPLE IRA

SIMPLE is an acronym for Savings Incentive Match Plan for Employees. It was designed to be a less expensive, and simpler method of setting aside funds for retirement.

Is it really possible to work from home?

With the current state of the economy, working from home has become a very popular option. Along with the growing interest in work at home or work from home jobs, comes the rick factor of getting caught up in scam-type jobs. There are many unscrupulous individuals out there that look at what people are interested in, and developing some sort of scam around that interest. Needless to say, people interested in working from home find that most information or offers for these types of jobs are just that, and nothing more.

One thing to keep in mind also is not to confuse this type of opportunity with a get rich quick type of scheme. Work from home jobs are JOBS! They require hard work, and are definitely not a get rich quick type of situation.  Some of the work from home opportunities that are available through this special program include the following:

* Traditional Data-Entry Jobs

* Word Processing

* General Transcription

* Business Coding

* Legal Transcription

* Document Data Recording

* Input Data Capturing

* Data Research

There is no prior experience required to obtain these jobs. Learn more about this fantastic opportunity to work from home, and earn an income working from your own home, or anywhere in the world.

My New Company Makes It Easy

My New Company understands the needs of small business owners.My New Company provides exceptional service, for less money, for small business owners or entrepreneurs just starting out as they formalize their business structure by incorporating their business or forming an LLC.

Almost all incorporation and LLC formation companies provide the same services and file the exact same paperwork, but My New Company goes further to guide you through the after-formation tasks that need to be completed. These tasks includes personalized documents like Bylaws (for Corporations) or Operating Agreements (for LLC’s), a Handbook and a Startup Checklist specific to your state to help you properly complete the start-up process for your new company.

My New Company offers a 100% satisfaction guarantee and professional customer service reps are always a phone call away to guide you throughout the incorporation process. Come and take a look around, compare the incorporation services to the competition and decide for yourself.

My New Company makes starting a new company as simple, fast and inexpensive as possible. They don’t just file the initial paperwork like most services, but provide virtually everything else that the business owner needs to organize, understand and properly maintain the new company. Definitely worth checking out especially if you are busy getting your business off the ground.

The 30% Strategy

Taking control of your finances is hard. It is very hard, actually. The most challenging aspect is the actual beginning. The first step is the hardest, but one that is essential. Once you start, the rest falls into place. It’s a matter of developing healthy financial habits. Once you start, you’ll build momentum, and before you know it you’ll have yourself a deeply ingrained habit. A habit of saving and paying yourself first. I call this the 30% strategy.

The 30% strategy is actually a simple process of investing, saving and helping. It does not matter if you have a lot, or have very little. The 30% strategy is simple. For every dollar that comes into your pocket take 30% off the top. This 30% goes into three spots each being 10%.

The first ten percent goes into an investment account. This money will accumulate and you will use it to fund your investments. Remember that the goal of your investments will be to create or buy assets. Assets are things that will put money in your pocket.

The second ten percent goes into a savings account. Always pay yourself first. This is the money that you will have to use when you retire, or your kids go to college. This account is for long term savings.

The third ten percent goes into a charity account, or tithing account. There’s nothing better than to give. Giving is what makes us human. Reaching out and helping other who are less fortunate is a blessing that gives on giving. The more you give, the more you receive. It’s a cliché, but in this case, it is actually true.

It’s a simple plan, but it is not easy. If it was easy, everybody would be doing it. Very few do, and that is the challenge. You may be tempted to skip a month or two at some point, but resist that urge. Once you stop, it’ll be much harder to start back up again. Instead, make sure you continue doing this each week, or pay period. You can choose different percentages, more or less, but do not be tempted to make it too easy on yourself.

You want to accumulate money as quickly as possible. Once you have a good amount accumulated, it’ll be much easier to see the benefits and results, and that will help you keep the program going. Also don’t be tempted to try and pay off all of your bills before you start. The longer you put it off, the harder it will be to actually start. Start now, and make it easy on yourself.