Learn the TRUTH on What It Takes to Become Successful in Your Business…
Entrepreneur Business Insights Home / Uncategorized / What is the best way to invest for a new entrepreneur?
What is the best way to invest for a new entrepreneur?
January 15th, 2009by
admin | Type:
Standard 3 comments
I have a year old business that is doing well. Now I want to know the best way to invest some of the profits to reap tax benefits but also diversify to cover for kids, retirement and emergencies.
Open an SEP IRA or invest in a Roth IRA for your retirement. Also invest in a 529 college plan for your kids and keep some cash money in a high yield savings account for emergencies.
For tax purposes, one of the best way is to open a Self Employment 401K especially if you are running a one person business (or a husband and wife). This is a special type of 401(K) plan is now available to self-employed individuals and owner-owned businesses.
The Self Employment 401(K) plan allows a self-employed individual or business owners with no employees other than a spouse to open and contribute to a Self-Employed 401(k) plan and receive a tax break from the contributions.
It allows you to substantially reduce your current income taxes because generally, you can deduct the entire amount of your plan contributions from your taxable income each year.
Some self employment 401K plans even allow for reinvestment into real estate though some plan providers such as Fidelity does not allow real estate investments.
Take your business to the next level with expert business coaching from a seasoned entrepreneur. Besides being a business coach, Anthony Yap is also a SEO expert. Learn how you can propel your online and offline businesses to new heights.
3 Responses to What is the best way to invest for a new entrepreneur?
Depending on your age, there is many different options. I would contact your local investment branch and see what is best for your current situation
Open an SEP IRA or invest in a Roth IRA for your retirement. Also invest in a 529 college plan for your kids and keep some cash money in a high yield savings account for emergencies.
For tax purposes, one of the best way is to open a Self Employment 401K especially if you are running a one person business (or a husband and wife). This is a special type of 401(K) plan is now available to self-employed individuals and owner-owned businesses.
The Self Employment 401(K) plan allows a self-employed individual or business owners with no employees other than a spouse to open and contribute to a Self-Employed 401(k) plan and receive a tax break from the contributions.
It allows you to substantially reduce your current income taxes because generally, you can deduct the entire amount of your plan contributions from your taxable income each year.
Some self employment 401K plans even allow for reinvestment into real estate though some plan providers such as Fidelity does not allow real estate investments.