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Invest in Your Business or Retirement

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					Invest in Your Business or Retirement




Whether To Invest in Your Business or Retirement. It's Not an Either-Or.

I get this question all the time from business owners about where to
invest.

Should you invest in your business or should you invest in an IRA for
retirement?

My simple shpiel? You have to do both.

Then I hear this from other clients: Justin, I feel like I have no
control over what happens to the stock market! I'd rather just put my
money back into my business.

I get it. I feel your sense of having more control in your business
but...

You still need to diversify. You can't put all of your eggs in one basket
and only invest in your business — even if you think your biz will
be worth tons down the road.

Here's why. Let's say you regularly invest in your business for   many
years. So the value of your business is the only thing you have   set aside
for retirement. But what happens if you can't sell your biz for   the
amount you want? Or even worse, what if it is worth zero by the   time you
try to sell it? You will be kaput. We don't want that.

But what if you could develop an investment plan that wasn't just tied to
the stock market! Woohoo! Now we are talking. Wondering how to do that?
Email me.

So how do you do both? Try reinvesting 5-10% of your revenue back into
your business. Try saving 5-10% of your revenue for retirement.

To save, you need to set up a system and it needs to be automated. Not
the willy nilly stuff where you do manual transfers from your business
account to your savings account every month or two. We need to take
things to DefCon 4. (Who saw War Games?) Take more control and automate
your savings.

One of the first types of accounts you may want to set up for retirement
is a Roth IRA. You fund it with after tax dollars. It grows tax deferred
and as long as you keep it in till you are 59 1/2 the money you take out
is tax free. Saweeet!

If you are single and your earned income is under $110,000, you should be
able to contribute to a Roth. If you are married and your earned income
is under $173,000, you should be able to contribute to a Roth. Please
double check with your accountant.

				
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