Health Insurance, Retirement, Benifits? How do i get these

Discussion in 'Business Operations' started by alexschultz1, Dec 3, 2011.

  1. alexschultz1

    alexschultz1 LawnSite Bronze Member
    Messages: 1,572

    So i want to continue to run my own business however as i get older i need to invest in myself more and more. I want good health insurance, dental, retirement, and i want to be able to get a large loan for a home. How do you own your own business but still get the same benifits as if you were working for a large company?
  2. Richard Martin

    Richard Martin LawnSite Fanatic
    Messages: 14,699

    The health insurance and dental can be bought from your state's Blue Cross/Blue Shield for a reasonable amount of money. The same for your retirement. If you're not sure who to talk to about retirement start with your insurance agent.

    If you want to get a mortgage you're going to have to do some work. Stated incomes are tough to prove and proof is what the mortgage underwriters want to see before they'll even consider a small loan. I did just get a mortgage but I was able to prove a long time standing as a profit earning sole proprietorship. I also have an excellent credit record. They even investigated my company's web presence. If I had not been able to prove that I make money (I even turn in cash and it's a good thing I did, it boosted my income up to and beyond what they were looking for) and that I operate a legit lawn service then they would have laughed me down the street.
  3. dhardin53

    dhardin53 LawnSite Senior Member
    Messages: 710

    No problem all it takes is money. You need to decide early in your self employment to plan for retirement. Every time this topic comes up there is a ton of people that think their going to live for ever and mow that long to and don't need to start planing now.

    First clam all your income and pay your self employment taxes. It takes 40 quarter payed in to Social Security to get the minimum when you turn 62 or 65. ( at age 62 roughly $900 a month) ( age 65, roughly $1200 a month). Thats for minimum, if you show a higher income and pay that appropriate SS in a long time these number will go up. Yes i know SS is broke and might not be their when we need it but right now thats no excuse to just pocket your income and hope its going to get better. And no you cant live on SS alone. So next is start a IRA type of saving. Best start with at least $2000 a year. Next come Health insurance ranging from $400 a month to $1200 a month. OUCH now that hurts the old cash flow I know but trust me. I have had 2 open harts, 5 buy passes, and 3 stints and a cow valve in planted.
  4. RGM

    RGM LawnSite Senior Member
    Male, from Baltimore Md
    Messages: 979

    I have a part time job at Home Depot real good insurance very cheap all you have to do is work 1 weekend day and they are happy. I been in the 401k there for 5 years and all ready have 20,000 in it. If you put in at least 5% of your pay they match 3.5% and you can buy there stock at 15% off the daily price 2 times a year and sell it the next day if you want.
  5. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Messages: 1,735

    live simply and well below your means. Max out your Roth and Simple IRAs each year. Dont ever buy new trucks. Dont finance anything except real estate. Personally, be your business' bank.

    My business pays me 6 figures a year and I choose to drive a $1500 honda. My last 3 business trucks were from ebay/craigslist and were paid for cash.

    You only get so much money in your life; use it the best that you can.
  6. meets1

    meets1 LawnSite Gold Member
    Messages: 3,845

    I agree max your roth or ira accounts. Never buying new i dont agree with. You only make so much money I agree with, personally be your business bank - kinda agree.

    This comes down to market your in, maybe your wife/gf also help supporting you or even making more than you, maybe you inherited money, someone helped you get started and the list goes on. Not everyone is on the same page.

    I doubt that right now outta of all the members on this site, that most could plunk down oh say $200K for a house, assuming your a family of 4-5, being that you need more than one bedroom, maybe more than one car/truck and maybe have kids to spend money on for everything and maybe have school tution, besides college. I know this is assumption only.

    I was able to start young enough and be smart. My wife and I have a decent amount in our ROTH and your simple 401 from her work, which she does hair, and works 3-4 days a week, while being a mother of 3 little boys and wife! Bless her heart! I am in rural iowa and we are going to charge only so much for lawn care, snow removal work. But then I look at my wife's rate they charge $18 for hair cut while another business charges $10. So things are not all equal is what I am saying.

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