Starting up and running a small business is a huge undertaking. Anyone who has done this can attest to the numerous responsibilities and worries that fall into the lap of the small business owner. It can be hard to focus on anything beyond the actual business, but it is important to stay focused on saving and investing.
In a recent U.S. News & World Report
article “13 Tips for Saving and Investing While Owning a Business
” author Dawn Reiss suggests it is important to make time for saving and investing even while focusing on your small business. Reiss has a variety of tips, and is sure to point out that using a small retirement plan can be a key component of success.
“After the business begins to make money and there is enough extra, consider investing in a SEP, where a business owner can contribute 25 percent of compensation or $53,000, whatever is lower. Once employees are in the mix, the calculations become complicated because an employer must contribute to their pension as well. That's when many small business owners will then move towards a profit-sharing plan where they can contribute based on their cash flow.”
A self-directed SEP, SIMPLE or Solo 401(k) are all viable options for small business owners and at Equity Trust you can use one of these plans to invest in a full range of assets (beyond just the stock market), including real property, notes, precious metals and much more.
If you are interested in learning more about self-directed small business plans at Equity Trust, sign-up for your free consultation below.