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Discussion in 'Business Operations' started by SouthernLawnCareTexas, Apr 20, 2012.

  1. SouthernLawnCareTexas

    SouthernLawnCareTexas LawnSite Member
    Messages: 19

    The last couple of days I've had a lot of free time due to a back injury. I have mostly been looking over my numbers, business plan, and goals for the company.There is still a lot I have to learn about this industry and over all my business is still quite small.

    With that said, one thing I have thought about is if I continue in this business what are my retirement options. I know everyone has a different plan and route for this, but what are the main options most use.

    My questions are: do most open a IRA, save money every year and invest in stock/ mutual funds, use a actual retirement company, or if none of these, what other options are there?

    I have yet to even finish college, but Id like to have an idea of what my long term options are in this area. Searched around the site a little, but didn't find much for answers.

    Thanks in advance.

    TYTILIDIE LawnSite Member
    Messages: 78

    As ridiculous as this may sound, my plan was to live off the business til the end even I am not really running it as much. But I am also trying to get big enough to make that a possibility.
  3. AlohaMowing

    AlohaMowing LawnSite Member
    Messages: 58

    A SEP-IRA with T.Rowe Price. In it I have a couple no-load T.Rowe Price mutual funds, one quite conservative in its investment strategies, and one that is a little more aggressive (and risky). When you are young, it seems as if age 59-1/2 is a long way off (the age at which you can withdraw money without a penalty), but you will be surprised how quickly it sneaks up on you. An IRA that allows your investment to compound without having to pay taxes every year on the capital gains is important to maximize your retirement fund.

    TYTILIDIE LawnSite Member
    Messages: 78

    So how are they doing?
  5. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    Your statements are confusing. If you are intending to "live off the business til the end," that would mean you are planning to live off the profit each year. But, the "get big enough" implies that you intend to live off the proceeds of selling it.

    The first part is a very bad plan. Thinking you will live off the business profits "til the end" is unreasonable. Your health may not permit this option. Your life span will exceed your ability to operate your business as an active participant.

    If you plan to grow the business, and appreciate the value to a point where you can sell out for a large sum, then you will have resources to live on after leaving the business. This is a very risky plan. The longevity of people in this business is pretty short, with very, very few lasting long enough to cash out on a sustained growth pattern.

    To the OP, the advice given in another post about SEP plans, and other plans is a good one. You need to hook up with an adviser that will learn your plans, your goals, your income stream, your expectancy on retirement, etc. He/she can develop a plan based upon YOUR situation. This is not a "one size fits all" proposition. What is good for somebody else is not necessarily good for you. Taxing structures dictate much of how a plan goes together, and few of us can understand the implications. That being said, the tax structure is a moving window, which may require course alterations to adapt.

    I am encouraged by the OP question. Far too many citizens are ill-prepared for retirement finances. The issue just gets put off, until a few years before retirement, and all those years that have passed during the working years are gone. Annual contributions, and starting very early, to a plan is vital if you expect to be prepared when the day arrives.

    TYTILIDIE LawnSite Member
    Messages: 78

    I suppose to clarify, I don't mean I will be out there cutting grass or doing any manual labor but, my goal is to eventually get to the point where the business runs itself and instead of selling like many do, I would expand to another state. This could take me a long time and could be a mistake. However, it is one of my goals, something I have a plan for and a place where I see myself in the next 10-15 years.

    I started my business because I had worked in all areas of it previously with the exception of the back office. Since I started out in 2004 I have learned MANY lessons and learned tons about behind the scenes operations. We are currently in the process of organizing the business to the degree in which it will permit me to run it smoothly. We are finally making enough money to have the time and or man power to develop systems that work.

    Of course I am getting a little outside help but, that's ok. It has taken me 8 years to finally realize that bridging the gap between where I am now and where I want to be in 10 years is NOT just based on how many clients I can get. Far more to it than I could have possibly thought. Point is, work, does not bother me, I am simply learning to work in a different way which ultimately should result in my intended achievement.

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