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Discussion in 'Business Operations' started by weed wacker 2, Oct 20, 2009.
What are you guys doing for retirement? I am only 22 but I need to start planning for retirement.
probably will die early, and the wife already said she's putting me under the compost pile, I aint saving no money for her.
If you are a full-time business owner, I would first suggest a Roth IRA which allows you to deposit up to $5,000/year for a single guy ($10,000 for a married couple). This is NOT a tax-deductible contribution but all the money (including the gains) is tax free upon retirement.
If you want to put away even more, a SEP (self-employment pension) allows you to put away close to $50,000/year and is tax deductible. Of course, all the money is taxable upon retirement.
Find a retirement calculator online and look how $5,000/month grows like crazy over time. If you start in your mid-twenties and stick with at least a full Roth, you'll be worth well over a million at retirement.
Good for you to begin financial planning. I read an article a few days ago, but can't find it right now about those not prepared financially for retirement. I think those prepared for retirement by age 65 is less than 25%. In other words, the vast majority of people don't have the financial resources needed to take leave from the work force. It is a pitiful situation that so many failed to plan for the day when they want to stop working, but are financially unable to do so.
Regular, systematic contributions -- get started early, keep the contributions going. Work with somebody who knows best how to manage these funds for you. Markets change and most people are not enough interested, or well enough informed to make proper decisions.
Would you invest in stocks or start an IRA. Both would be beneficial I imagine but I am not wanting to invest too much in stocks so soon.
and why would that be, look at cat, deere, cummins and even ford and look what there stock has done since there low.
Would you invest in stocks or start an IRA? Both would be beneficial, however I am not wanting to invest too much in stocks so soon.
WW -- your questions are exactly why an adviser is needed. There is MUCH, MUCH more to the story than just choosing stocks over an IRA. Everybody's needs, goals, and resources are different. One answer to that question might be right for one person, and wrong for 99 others, or visa-versa.
You can invest in stocks AS an Ira...
I'm not sure exactly how it works, but I do know it can be done.
It's also more to the story than just picking a stock...
I ain't never heard of that, it might be tax deferred but there ain't no such thing as a free ride.
So before anyone makes a choice they might later regret, I would second the recommendation of speaking with an adviser / accountant.