|Let’s Talk Retirement|
Let’s Talk Retirement
O.k. so you’ve filed your tax returns or at least your extensions. Well now is the perfect time to talk about retirement planning. It is still early in the year and last year’s financial information is fresh in your mind. The business decisions you made, the ones you wish you hadn’t made, are all still fresh. It’s almost better than New Year’s Day, when everyone makes their resolutions.
Many people who own their own businesses completely neglect retirement savings because they feel that they can’t afford it. When they look at the bottom line each week, they see a steady stream of money going out the door. They figure that they pay themselves just enough to get by so it stands to reason that a luxury such as retirement is something they just can’t afford. I’m not going to argue whether or not you can afford to put money into a retirement fund but let me just say, “dollar-cost averaging.” Sounds a little scary and mathematical but it is your second-best friend when it comes to saving for retirement. The idea is that you put a little money, let’s say $50 a week, into an IRA or some other retirement vehicle of your choosing. I don’t know about you, but that is perhaps a dinner out somewhere, or a couple of lunches throughout the week or maybe even a week’s worth of latte’s from Starbucks. Nevertheless, you put an amount of your choosing, every week into a mutual fund you’ve chosen from your IRA broker. Throughout the day, every day, the price of that mutual fund is changing. It is rising and falling. Sometimes, when you purchase shares, it will be high and sometimes it’ll be low but over time, your investment will increase in value. The dollar-cost averaging has an advantage because you don’t just plunk all of your money down at one time and take the price you just happened to get on that particular day hoping that for every day after that, it will continue to increase in value.
For more information, please contact TM Accounting Services, phone (866)966-0855 (toll free), fax (877)482-9538 and the website is www.TM-Accounting.com