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Retirement

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					Retirement Issues for Small
Business Owner
 1) Value of the Business
   Selling outright
   Liquidating
   Passing on to family
 Value/Net Worth of the business,
 many times, is the most valuable
 asset of the business owner
Retirement Planning
 Individual is responsible for retirement
 income
 Example
   Age 25, retire 60, live to 85+, need 80-90% of
   income
   $2,000,000 goal
   Maximum social security benefit =
   $1,742/month
   Saving goal
      $870/month, starting at age 25
      $2,103/month, starting at age 35
      $5,800/month, starting at age 45
Investing
 IRS provides many tax-deferred or tax-free
 investment accounts
 IRA – Individual Retirement Account
   Deductible
   Non-deductible
   Roth
 SEP – simplified employee plan
   Less than 25 employees, 15% of
   compensation, maximum $22,500/annually per
   person
Investing
 Other accounts
   KEOGH plan
   SEP IRA
   Simple IRA
 Individual must choose investment
 options
   Stocks
   Bonds
   * Mutual Funds
Other Benefits
 Medical
   $5 deductible, prescription
   $690/month, $8,280 for family of 4
 Dental
   Preventative
   Restorative
 Disability Insurance
   66% of $50,000, age 30
   $240/month, $2,880/annually
Other Benefits
 Life Insurance
   $500,000 face value, age 35,
   nonsmoker, good health
   Term insurance - $860/year
 Time Off
   Vacation, sick, personal time
   Average small business owner works 74
   hours per week
   Takes 4 weekdays off

				
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