The Green Industry's Resource Center

Sean Adams · #1 01-19-2006, 09:49 AM

I am not a financial advisor - that's why I hired one. At some point (the sooner the better for sure) you will need to come to the realization that when you decide to hang up your boots someday there will not be a pension and gold watch waiting for you. As a self employed person you need to create your retirement options. There are several options - SEP (Simplified Employee Pension), Keogh Plans, New Roth IRA's, Deductible IRA's, etc... The earlier you start to contribute a % of your income to these different options, the less you will have to contribute and the more you will have come retirement age.

Use the net and look around for financial advisors. Try and find a firm that either specializes in or has a specific department that specializes in self employment investing. One of the better moves you will make for yourself, your family, and your business.

olderthandirt · #2 01-19-2006, 10:10 AM

Sean , It should be your main goal in business, if it is an early retirment that you wish everything else you do will be geared to achieve that goal.

Sean Adams · #3 01-19-2006, 10:18 AM

Mac,

Wise words for sure...I think the obvious issue is it is hard for people far off from retirement age to realize the importance of spending the good years of their life not working...it is one of those "yeah, I'll get to it..." things. That money being put away does not produce immediate results or satisfaction and therefore, it is put off. I have always said that I think investing and financial planning should be a part of every regular high school curriculum - if for no other reason than to stress it's importance.

Hard Worker · #4 01-19-2006, 01:03 PM

Sean other than insurance this is one of the main reasons that we have not went full time with our business. Currently my company that I work for full time has a tremendous 401K plan that I contribute to heavily.

I think it would be beneficial to several of us to have a representative or forum set up to discuss these two issues. Would it be possible to have these as sponsors to this site?

These two areas are so.... important in running a successful business, just as important as the equipment we use everyday. What do you think?

Sean Adams · #5 01-19-2006, 04:03 PM

agreed...lemme see what I can do

Hard Worker · #6 01-19-2006, 07:57 PM

Thanks Sean and thanks for such a great site!

cpritch · #7 01-19-2006, 08:22 PM

It's funny that you should mention that financial planning should be a required subject in schools. My husband is a Financial Advisor and is currently trying to implement a community education program concerning the basics of financial planning and investing. He just told me the other night that he thought it was ludicrous that in high school he learned how to make chocolate chip cookies, but was never taught how to invest or plan for retirement when social security is such a concern. He actually specializes in working with self-employed individuals since most of them don't have access to any type of sponsored retirement plans and most aren't aware of what type of plans are available to them. If anyone does have any questions, I'm sure he would be very happy to help. His name is David and he can be reached at 816-804-1822.

Grassmechanic · #8 01-20-2006, 09:43 AM

Quote:

Originally Posted by Sean Adams

There are several options - SEP (Simplified Employee Pension), Keogh Plans, New Roth IRA's, Deductible IRA's, etc... The earlier you start to contribute a % of your income to these different options, the less you will have to contribute and the more you will have come retirement age.

Use the net and look around for financial advisors. Try and find a firm that either specializes in or has a specific department that specializes in self employment investing. One of the better moves you will make for yourself, your family, and your business.

This is not only good advice for self employed, but for everyone. EVERYONE who works for a living should be contributing, at a MINIMUM, to an IRA, preferably a Roth. If your employer offers a 401(k) or a 403(b) or a Roth 401(k), you should also be contributing to it, also. If you are relying on SS or a pension to get you through retirement, you'll be sadly disappointed. Financial planning should be a required course in HS. Start early and save often.

Sean Adams · #9 01-20-2006, 09:55 AM

Unfortunately we are now a society of material things seemingly dictating your status and we are driven by the desire to accumulate as much as we can... this does not correlate with saving and preparing. We indulge now because we can. Certain members of this site know that back in the day buying a house meant money down - buying a car meant it was the car you would be planning on driving for a decade minimum. If you wanted something you had to save up to get it, and only if you could justify the expense. Even pertaining to this industry...when I first started they wanted blood samples and DNA before contemplating the financing of equipment, etc...

Now....credit cards baby. Buy now, worry later. Our society has learned to deal with and accept the concept of the "back end" because it is not now..... If you have a social security number, the sky is the limit.

jc50292 · #10 01-20-2006, 11:19 AM

Sean, have you ever heard of Dave Ramsey? He's a "get out of debt, owe no man nothing but your love" sort of guy. He has his own website, www.daveramsey.com, and he's very good. He's very much for being in business for yourself and yes, he mowed lawns to get his start.