Little known Ways To Get More Out Of Your Investments And Potentially Cut Your TaxesSubmitted by DSI Wealth Management on September 25th, 2015
In a perfect world, financial goals are set, savings plans are put into place, and money is invested wisely. However, more and more baby boomers have found that they have been frivolous in spending and have put back little for retirement. If you find yourself over the age of 50, and far from financially sound, use these financial planning tips because the clock is ticking louder than ever.
Have Your Money Actively Managed
What does active money management means? Simply put, active money management is an approach to the stock market which maintains that the greatest returns can be generated by moving in and out of stocks at the appropriate time.
“Active management” is counter to the “buy and hold” approach, the theory that an individual investor cannot outperform the overall market, so it’s best to buy great companies and then sit back and wait. Yet because of increased market volatility in recent years, due mostly to online trading which moves large blocks of stocks, we believe new opportunities can now be capitalized on unlike in decades past.
Start a Home Based Business
The Internet has introduced thousands of extra money opportunities for individuals, just like you. However, stay away from get-rich-schemes that require money upfront and promise amazing results. Time and patience is the name of the game and creating a 5-year plan is the best way to get started. Think about the skills that you have, what pleases you, and how you can make these work to your advantage. Surf the Internet for social media where like-minded people can offer advice on how to turn your passion into money. By starting a business that mirrors your passions, the future will seem more like play than work.
As long as you have a product or service, are advertising for sales, and slowly building a small business, you are able to qualify as a home-based business. The government supports your zeal in promoting a better way of life and gives big rewards in tax cuts and deductions for the entrepreneur. You can now deduct a portion of your home, utilities, depreciation on equipment, mileage, mortgage interest, real estate taxes and more by simply operating even a part time home-based business.
Strategically Use Retirement Plans To Your Advantage
This is a financial planning tip that can really help small business owners. Though there are many options available to you, you can get more tax benefits and savings by strategically using retirement plans. You can use them if you’re a solo entrepreneur (self employed) or even if you bring in employees.
While there are other types of plans, the most commonly used by business owners are - Simple IRAs, SEP IRAs, Solo or regular 401(k)s or Contributory IRAs (Roth or Traditional). Each plan comes with it’s own benefits for the type of business entity you have. Plan costs and compensation deferral amounts are the trade-offs to consider when choosing between them.
Talk to an experienced financial advisor who can guide you through the maze of different plans. They should also be able to help you determine which retirement plan(s) give you and your business the most tax benefits over the short and long term.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.All investing involves rick, including the loss of principal. No strategy assures success or protects against loss.