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February 13, 2006


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That is a great post. And, if you have children, and your own business, consider hiring your children to help with business tasks. If you pay your child just $4000 a year, it lowers your total profit (and tax liability). In addition, your children are less expensive to employ because you do not have to get involved in FICA (Social Security and Medicare) and FUTA (Unemployment). Further, your children do not have to pay any taxes on that money. Since it is earned income, they can sock it away in a Roth IRA.

My daughter will be eight this year, and I plan on getting her started. If she does this for the next ten years, she will have contributed $40,000 when she and her friends are just starting college. Plus, she can withdrawal the contributions to pay for her first home, and she will still have the earnings in the IRA. Plus, investment limits reach $5000 per year in 2008, so that number will go up even higher.

Invest invest invest, no matter your age. It can't be stressed enough. I actually just posted on the differences and common questions between the 3 main retirement accounts. (Spurred on by all the questions I hear my co-workers ask)

This was a nice post to make people realize, YOU NEED TO START NOW. Even if it's just a little, smoke one less pack of cigarettes a week (you should just quit but I'm not your mother.)

I like the IRA, if you can hit it big with it when you retire that gross earnings column on your monthly income will be the same or fairly close to your net income. How cool will that be, I hate to get a paycheck with all that tax out of it.


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