Settling on a Salary
It’s somewhat disheartening that 40% of working Americans believe they will never save enough money to retire.1There may be nothing you love more than running your business today. However, you may not be willing and able to stay involved forever, and there could come a time when your interests or passions lead you elsewhere. When your company’s bottom line improves, it may be tempting to give yourself a raise and use the extra money to enhance your current lifestyle. But if you want to be in a position to finance your retirement dreams, you may want to think about how you can use some of your business proceeds to benefit your financial future. Good Time to GrowOwners may work the longest hours, but for better or worse their paychecks come from whatever is left after other business expenses are paid. One rule of thumb is that no more than 50% of the profits should be taken as salary, but more may be required to meet personal needs during lean times.  As revenues grow, consider whether it might be beneficial to forego a certain amount of salary and reinvest back in the business. Modernizing equipment or facilities, hiring new employees, or ramping up marketing efforts could help boost your company’s productivity, market share, and future profits. Budgeting for BenefitsDepending on how your business is organized, you may be able to take advantage of personal tax benefits by deferring some salary and contributing to a qualified retirement plan. It may also be worthwhile to devote some resources to funding other types of workplace benefits such as life, health, and disability insurance for both you and your employees. Of course, you own a business so you will have the income you need to live well today. But it might be possible to choose a salary and benefits that could also help you to lighten your tax burden, grow your business, and save for a comfortable retirement. 1) CNNMoney, April 13, 2011 The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc. |
| Hammortree Financial Services |
print this page| 145 S. Virginia Street | • | Crystal Lake, IL | • | 60014 |
| Phone: 815-788-7420 | • | Fax: 815-788-7430 |
| • | ahammortree@hammortreefinancial.com |
Links to other sites are for your convenience in locating related information and services. This Agency, The Guardian Life Insurance Company of America (Guardian) and Park Avenue Securities, LLC (PAS) do not maintain these other sites and have no control over the organizations that maintain the sites or the information, products or services these organizations provide. Although this Agency, Guardian and PAS believe that the information from these organizations is reliable, we cannot guarantee its completeness or suitability for any purpose. Accordingly, this Agency, Guardian and PAS expressly disclaim any responsibility for the content the accuracy of the information or the quality of products or services provided by the organizations that maintain these sites. This Agency, Guardian and PAS do not recommend or endorse these organizations or their products or services in any way.
The information or opinions contained in this Internet site should not be constructed by any consumer and/or prospective client as an offer to sell or solicitation of an offer to buy any particular investment product. The information contained herein is directed solely to those individuals who reside in jurisdictions in which the representative is registered in the state where the consumer and/or prospective client reside. Any subsequent direct communication with a consumer and/or prospective client shall only be conducted by a representative that is registered in the state where the consumer and/or prospective client reside.
Annette Hammortree is insurance licensed and registered to offer products and services in: Alabama, Arkansas, Arizona, Florida, Georgia, Illinois, Kentucky, Michigan, Minnesota, Missouri, New jersey, New York, Ohio, Oregon, Pennsylvania, Texas, Wisconsin, Wyoming.
Annette Hammortree is securities licensed in: Arkansas, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Washington, Wisconsin, and Wyoming and is strictly intended for individuals residing in those states. No offers may be made or accepted from any resident outside these specified states
Annette Hammortree is an IAR (Investment Advisor Representative) licensed in: Florida, Illinois,Massachusetts, Minnesota, New Jersey, New York, and Wisconsin and is strictly intended for individuals residing in those states. No offers may be made or accepted from any resident outside these specified states.
Annette Hammortree, Registered Representative & Financial Advisor of Park Avenue Securities LLC (PAS), 8010 Excelsior Dr, Suite 200, Madison, WI 53717 (608)828-9800. Securities products/services and advisory services offered through PAS a Registered Broker-Dealer and Investment Advisor. Annette Hammortree, Financial Representative of The Guardian Life Insurance Company of
PAS a member of FINRA,SIPC