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Saturday, January 15, 2011

Reap Your Rewards


Do not be deceived: God is not mocked,
for whatever one sows, that will he also reap.
- Galatians 6:7 (ESV)

they will eat the fruit of their ways
and be filled with the fruit of their schemes
Proverbs 1:31 (NIV)

In business, you want to reap your rewards.  You seek to benefit from your business in one way or another.  Whether it is through a salary or an individual 401(k) plan, you want to reap some rewards from the blood, sweat and tears poured into the start up and establishment of your business.  Reaping the rewards is expected.

Usually, you get back more than what you put in.  Let's take the stock market for an example.  Your returns, including dividends and capital gains reinvested, over a typical ten year period will average you a rate of return somewhere between a conservative 7% or 8% return, while some aggressive investors tend to look for at least 10% or higher.  That all depends on the period of your investment like the Tech Boom or the Housing Bubble, even 9-11.

However, none of that matters if you never invest.  You have to put something in the nest egg for it to eventually hatch.  That just makes sense.  No matter your time horizon, as a business owner, you have an advantage over the average American employee.  You can contribute more towards retirement.  Yet, if you have the option and never exercise the option, then it is shame on you. 

Position yourself to advantage of your choices.  Savings bonds and your passbook savings account won't be enough with gas already over $3 and milk almost at the same price.  Look into individual 401(k) plans, SEP or Roth IRA plans, and other retirement plan options.  Make sound investments with your "salary" from your business.

You can reap, but you certainly need to be sure to sow now in order to do some reaping the future.
http://www.sharebuilder.com/ Invest a little here and there for as low as $4 per trade with this purely online deal (associated with ING Direct).
http://www.fidelity.com/ SmartCash account is a great addition to your portfolio along with their various small business investment plans for retirement.
http://www.tdameritrade.com/ Retirement guides and plans that work for all size investors.
www.ingdirect.com  Its Orange Savings and Electric Orange accounts are truly great in my opinion.

Just For the Record

Yes, You Can Get A Financial Life!: Your Lifetime Guide to Financial PlanningYes, You Can Supercharge Your Portfolio!: Six Steps for Investing Success in the 21st Century  Ben Stein & Phil DeMuth do a great series for investors.
Yes, You Can Still Retire Comfortably!: The Baby-Boom Retirement Crisis and How to Beat ItYes, You Can Be A Successful, Income Investor: Reaching for Yield in Today's Market              

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