When you are dealing with a home business, you might find that some of your finances are run a little bit differently. For instance, you might not have a retirement account with your home business like you would if you were working for a company that set one up for you automatically. This might be fine if you are only running your home business for a few years and then planning on going back to work but if you want this home business to be what you are doing for the rest of your life, it is going to be very important that you save for retirement.
Indeed when you get to be the age that you no longer want to be working, there is going to be a lot of time and you are going to need money for your retirement.
The best way that you can save for retirement as a home business owner is to set up an individual account for yourself and be sure that you are putting money into it. This can be done any way that you want it to be done.
If you want to use your savings to do the stock market thing or if you just simply want a bank account for it, either way the most important thing that you have to remember is that you are not going to be able to have payment automatically made for your home business retirement account because you are not going to be getting a paycheck. So you have to be sure that you are taking the initiative and actually going to be saving each month.
This is something that you have to be sure you are doing because it is not going to be done for you. Remember that as with taxes and anything else that has to deal with your finances, be sure that you are keeping careful track of the things that you are doing when it comes to your retirement account and that you are balancing this money all of the time. If you do not do this, you might not know how much money you have in there and you might not know what you need to survive.
So, you have to be sure that you are taking responsibility on yourself for saving for your retirement. It is a good idea to talk to a financial advisor to make sure that you are getting the best deal. You want to find a place to put your money where you are going to be able to make money, even if it is gradually. Be sure that you do this so you know for certain what kind of things you can do with your retirement funds and to make sure that you are not going to lose them at all.
Obinna Heche
http://www.articlesbase.com/finance-articles/how-to-save-for-retirement-140939.html
Is 18 too young to save for retirement?
I don’t know if this is adsurd but I really want to save retirement right now.
Is 65 years old, too old to work?
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The sooner you start the better. A person who saves simply from 21-28 and stops, will end up better off than someone who starts at 28 and saves all the way until retirement age!!! It’s called the Power of Compounding Interest.
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one is never too young to save! start while you’re young and you can be guaranteed of a secured and independent old age.
a 10 for you young man. go go go!!!
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That is great! The more you save the more your nest egg will grow!!! Contact a financial planner and go in for a talk, find out all the options.
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It is a good idea and when you are that young you can put say 50 a month away and it will add up to lots when you are 65. Go for it.
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NO!
If you start now and invest it in a money market account, you will retire a millionare. I sure wish I would have had your wisdom when I was 18.
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Daveramsey.com
NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!! That’s a great age to start. You can start saving/investing small amounts, & as your income increases, increase the amount of your savings. That way, when you are much more mature (like me!), you won’t have to worry about how you will make it through your retirement. You’ll already have a lot invested & saved!
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Yes, me. I’m 55 & wish I had started investing/saving a LONG time ago. I know now I will never be able to completely quit working.
How much are you making? If you are just working a minimum wage job it is NOT WORTH IT. For one thing you probably hardly pay any tax right now. Save to contribute to your retirement later on… it’s tax free so use it later when you are making more money to offset your higher taxable income.
Plus once you get a better job your employer will likely contribute or even match your savings each year if you are lucky.
Save money right now, but don’t do it for retirement. Save up a nice down payment for a house.
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Accountant
no
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no i don’t beleive 18 is too young, in fact I started then also.
I used a simple formulae that has always worked for me. It works on percentage of your income:
Living costs (ie rent, board, phone, electricity etc) – 60%
Spending Money – 10% (ie. night out, dinner out, movies, etc)
Savings – 10%
Debt Repayment (ie loans, hire purchases etc) – 10%
Addtional Expenses (ie, clothing, medical bills, etc.) – 10%
This has worked as 10% of my income goes to savings, 10% for spending money. If I wanted to get an item on hire purchase but the payments were more than 10% then I didn’t get the hire purchase and saved for the item instead.
This has helped me out of a bad financial situation and helped others when I showed them also.
Hope this helps also.
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No, you are quite wise in considering your retirement needs now. Compound interest even at todays low rates will really add up over the years. Even if you believe the doomsday people that say the world wide economic system will collapse by the time you reach retirement age, you’ll still have money saved up to buy canned food and shotguns.
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If you have everything you need and your family taking care of you and you have all the money you need for school then i would start saving . If you put it into a retirement account and you need it for school or a living expense as you didn’t give any other information. You would have to pay a penalty if you took it early and then what good was it to put it away. If you have everything go for it. I f not i would be a little cautious on it as you might need it. If it was easy everyone would be rich when they get old.
It just doesn’t work out unless you want to live like a miser or get a really high rate of return because of inflation. Inflation will make everything cost more and you’ll have less money.
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Age is not a basis of savings. The point of saving is this: the more money you save in more time will yield more. If you save while your 18, your portfolio after 20 to 30 years will dramatically increase. The principle of interest is rate x base x time. The more time the higher your base will increase.
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No, the younger the better. I’m 24 and just now starting to save for retirement. If you invest and save in your 20′s you have a much greater chance of being rich and retiring one day. For some good advice I would suggest you read a book by Dave Ramsey called "The complete money makeover" and it will teach you to live frugally and how to invest and set up your financial future. Best of luck and happy holidays
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