Small Business Boomers

The Wall Street Journal suggests that Joe the Plumber should get a SEP-IRA to protect his profits from being taxed. So what is a SEP-IRA?
A SEP-IRA is a Simplified Employee Pension IRA (Individual Retirement Account), which allows you to make contributions to your own and employee retirements. SEP-IRAs essentially function as “profit-sharing” plans, because they allow contributions based on owner and employee compensation, including bonuses.
SEP-IRAs work the same way as other types of IRA’s:

Limits on how much you can contribute to them each year,
Penalties and interest for withdrawal before age 59 1/2 (with some exceptions). …read more

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If Joe the Plumber can do it, so can you. Fix things, I mean.
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Forbes Magazine says that personal and home repair and maintenance services are one of the 10 most profitable home businesses, ranking up there with consulting and brokerage services. And a home repair business doesn’t take a lot of education or capital investment to begin. Forbes says the average pretax profit on this type of business is 10 percent, which is pretty good.
My brother-in-law did repairs for several years after he retired; he worked in a large apartment complex, …read more

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