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Investing ???

Discussion in 'Lawn Mowing' started by dan35, Feb 1, 2001.

  1. dan35

    dan35 LawnSite Member
    Posts: 23

    Do any of you invest for your business? I know we invest time and money in our equipment and customer base but I’m talking about stocks, bonds, and savings. I have a second job with a 401k and retirement. The retirement’s not worth much but the 401k has performed very good over the last five years. Well this got me to thinking when I decide to retire or sell my lawn service I would like to have more than just what the equipment and accounts would sell for. So about two years ago I opened a mutual fund for the business. I had to invest $1500.00 and agree to have at least $100.00 a month go into a automatic bank draft. Things went so good I have raised my monthly bank drafts three times. This is not an IRA so if you need the money it’s yours and you can get it with no problems. You do have to pay tax on your dividends but hey it’s income! Just wondering how others handled this side of our business.
  2. Mike Nelson

    Mike Nelson LawnSite Senior Member
    Posts: 416

    I often asked that question to myself and now to my accoutant.His reply was for me to take the money personnally and invest it for me.
    Don't worry about the company.
    My thought was if you could put enough away and start collecting interest,the company would be more stable no matter how much work you do!
    Anyway just my 2 cents..:cool:
  3. Eng Mwr Guy

    Eng Mwr Guy Gravely Manufacturer
    Posts: 249

    Another reason to NOT invest money in the business name is for legal protection.

    Hurt/kill someone with the mower and the company gets sued. There is a good chance all of the money you have saved will go to the injured person.

    I recommend investing your money in accounts with your name.

    I also recomend putting your money in a Roth IRA if for retirement or education expenses.

    Good Luck
  4. Mr.Ziffel

    Mr.Ziffel LawnSite Senior Member
    Posts: 291

    On the other hand Microsoft has billions in cash and has made most of its profits in the past few years from investments!

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