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I need help on smart investing for a middle aged small business owner (early 50's). Need to catch up. What are smartest ways to do this? Best tax free savings plans? Do you have to invest out of profits or as sole owner can you "pay yourself" out of the business ( a small business, inc.) for tax free investing? Would like to invest a good amount each year for the next 15 years or so but need good rate of return to build enough for retirment by the end of the 15 years. I know, how doesn't need a good rate of return....but what is suggested?
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T. Rowe Price helps small businesses and sole proprietors set up SIMPLE retirement plans. They have very easy to understand guides.
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TDWaterhouse and others (including ShareBuilder) do a great job with
SEPs. You can put away up to 20% of your income (up to $40,000 p.a.) and the best part is that IT'S TAX DEDUCTIBLE.
check w/ your accountant and also the retirement boards to see which option might work best for you. Good Luck!
p
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I need help on smart investing for a middle aged small business owner (early 50's). Need to catch up. What are smartest ways to do this?

I know this is not what you expected to hear...

One of the best ways to grow faster then the average rate of return is to apply specialized knowledge rather then just let the capital grow passively.

As you are a small business owner you should be thinking about ways to ramp up the business income for a 2-5 year period and then sell out the business. Extra marketing or some other way to help build the annual sales so that when it comes time to value the business and get it sold you achieve a higher price.

Assuming that you are reasonably successful at this then build into the sale some post sale consulting and advisory work so that you have a bit of an income and can help get the new owner off to a good start. Works well if there are target bonuses in the buy out.

You might be tired of the business but I am willing to bet you know more about how to grow it then you will know about how to grow your investment funds.

John
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