The 250 Retirement Questions Everyone Should Ask by David Rye & Kori Bowers

Author:David Rye & Kori Bowers
Language: eng
Format: epub
Tags: ebook, book
Publisher: Adams Business An imprint of Adams Media, an imprint of Simon & Schuster, Inc.
Published: 2008-07-15T00:00:00+00:00

Chapter 12

STARTING UP A PERSONAL BUSINESS

Having a personal business is now a reality for millions of Americans. With the advent of sophisticated, yet inexpensive, office equipment such as personal computers, faxes, and copiers, just about anybody can afford to set up a business. In a Yahoo small-business survey, 72 percent of respondents ages 55 and older said they would “never be too old” to start their own businesses according to an article posted on www.usnews.com/usnews/biztech/articles/070130/30boomerentrepreneur.htm.

Question 146: Why should I consider starting a personal business?

About 80 percent of boomers claim they want to work into their retirement, according to Sara Rix, senior policy adviser at the Public Policy Institute of AARP. She says “many of them will try self-employment.” Some considerations that justify starting your own business include: achieving tax benefits, utilizing the benefits of modern technology, following a lifelong dream, or realizing the desire to continue to work. At www.entrepreneur.com , you can research different business ideas and considerations.

Question 147: Should I consider supplementing my retirement income with income from a personal business?

If there is a business that you’ve wanted to start, retirement is a good time to consider it. However, be cautious. Many businesses have significant start-up costs associated with them and require a time commitment of sixty to eighty hours per week to break even in that critical first year. If your business centers around contracting out your services, then you may be able to minimize your costs and be very profitable by taking this approach. Look at the type of work you did before retirement. Can you do that on a contract or freelance basis? If so, that may be your best option for a post-retirement business.

Question 148: Where can I find more information about how to start a personal business?

There are some fantastic resources available to you. The Small Business Administration (SBA) has a wonderful Web site that features articles and related information on starting a business. Simply click on www.sba.gov for more information. The SBA also provides links to additional resources at the bottom of their home page.

Also consider reading Daryl Allen Hall’s book, 1101 Businesses You Can Start from Home, which has several business ideas as well as information on how to implement them.

Question 149: What are the five basic steps I need to go through to set up a personal business?

1. Open a separate business bank account. This is a vital step because you want to separate your business transactions from your personal transactions for accounting and tax purposes.

2. Get a vendor number from your state. This entitles you to buy products and services wholesale from a number of wholesale outlets across the country.

3. Set up your business to accept Visa and MasterCard. Check with your local commercial banks to find out what you need to do to apply for a card payment system.

4. Take full advantage of tax-deferred retirement plans such as Keogh and SEP plans. These plans are only available to the self-employed, and in most cases, offer superior features that are not available in traditional IRA plans.

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