|
"A man should never neglect his family for business."
~ Walt Disney (1901-1966), Animator, Producer,
and Dreamer Extraordinaire
|
|
Social Security and Self-Employment
 The fastest growing segment of business startups is composed of businesses run by seniors (called seniorpreneurs). The U.S. Small Business Administration reported that 15% of workers expect to start their own businesses when they retire and many seniors already own businesses.
How does self-employment impact the receipt and taxation of Social Security benefits? The following information is based on 2014 cost-of-living changes.
Limits on earnings
Your age when you start to collect Social Security benefits impacts whether those benefits are reduced.
- If you are at least age 62 but not age 66: You lose $1 of benefits for each $2 of earnings over a set limit (the 2014 limit is $15,480). "Earnings" includes taxable compensation from a job and net earnings from self-employment.
- If you are age 66 or older: You can earn any amount without a loss in Social Security benefits. For months prior to the 66th birthday in the year of this birthday, benefits will be reduced by $1 for each $3 over $3,450 per month in 2014.
There is a special rule for the first year of retirement for those under age 66. There will be no benefit reduction for any month in which 2014 earnings do not exceed $1,290 (1/12 of $14,480) (the "first year rule"). For example:
| |
|
E&O Coverage: Do You Need It?
|
Errors and omissions insurance is coverage for service providers for things they do negligently or fail to do but should. For doctors, lawyers, and accountants, it's commonly referred to as malpractice insurance or professional liability coverage. But you don't have to be in a trade to have E&O coverage. Who needs it?Just about any small business person who provides service or gives advice may want E&O coverage to provide a financial backstop for mistakes that get made. Service providers and advisors can include web designers, PR agencies, wedding planners, business coaches, and others who deal with customers, clients, and patients. The insurance can be purchased by the business or by the individual service provider. In some cases, the customer or client will require that you have E&O insurance in place as a condition for a project. What does it cover?As the terms "errors" and "omissions" imply, the policy covers you for mistakes that you make or for actions you fail to take but should have. Read More... |
|
Keeping Up without Information Overload
| Alvin Toffler popularized the term "information overload" in Future Shock in 1970 to denote the rapidly increasing amount of information bombarding everyone (the term appeared in print elsewhere several years earlier).
The Information Overload Research Group estimates that 25% of your workday is used on IO. What can you do?
Handling IO
There's no single trick or answer to avoiding the overload of information today. You're bombarded through an ever-growing range of technology. But being overloaded can impede our ability to function optimally. What's more, it can simply wear you down. What can you do? I recognize the paradox that I'm supplying more information as a way to help you reduce IO but here are some of the articles I've read to help me in my quest to lighten IO:
|
|
Our Readers Ask
|
Q: I'm 72 and still running my business. Can I continue to add money to my retirement plan?
A: It depends on the type of plan you have. For example, traditional IRAs bar contributions after age 70½. But if you have a SEP, there is no age limit on making contributions. You can add to retirement savings on a tax-deductible basis. However, because of your age (70½ and older), you must continue to take annual required minimum distributions (RMDs).
|
|
Book Reviews
My books in the J.K. Lasser series are now available through Amazon and in bookstores everywhere:
This updated book, which has been in publication for nearly 20 years, is geared for year-round tax planning as well as for preparing 2013 tax returns.
Celebrating its 10th edition, this book is for individuals who want to maximize their deductions, credits, and other tax-saving opportunities on 2013 income tax returns.
This new guide is designed for new service providers looking for answers to maximizing their after-tax profits and success as self-employed people. The book is more than just a tax guide; it offers help with financial concerns, insurance, and other business details that need to be addressed.
|
|
|
|
|
|
~~~
|
|
|
It's a Fact!
The Best (and Worst) Business Climate for 2014
If you're considering a move, which states are the most favorable from a business perspective? "The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth." The top 5 states are: Wyoming, South Dakota, Nevada, Alaska, and Florida. The worst 5 states: New York, New Jersey, California, Minnesota, and Rhode Island.
|
|
|
|
~~~
Build Your Business Radio and
Business Leader Radio
Remember,
you can hear live broadcasts every 3rd Tuesday, from
|
Don't miss out -- get your
You can now get your Idea of the Day® and all the latest news and information from Big Ideas for Small Business® on your mobile devices.
|
|
|
