For Entrepreneurs A Simple IRA May Be Best

Q: I own a small decorating business and I’ll be the first to

admit that I don’t know anything about taxes or retirement

plans. I’d like to set up a 401(k) or an IRA or some other kind

of retirement plan for me and my three employees. What are the

various retirement plan options available for a small business

owner and in your opinion, which would work best for me?

-- Wanda S.

 

A: Wanda, I appreciate your confidence in my humble opinion,

but asking me for financial advice is like asking Donald Trump

for a recommendation on hair care products. I can tell you what

works best for me and my business, but you’ll need to do your

homework and seek professional advice to figure out what would

work best for you. As a side note, I hear that Donald Trump is

coming out with his own line of hair care product soon to be

called “Big Head.” The formula is 1% mousse, 1% liquid nails,

and 98% hot air. It should be a big seller among the high brow,

comb-over crowd.

 

Here’s my best advice on retirement plans: find yourself a

financial advisor (or financial planner) who is has experience

working with small businesses and have him or her explain the

options available and make a recommendation as to the type of

plan best suited for you and your business. When I say

“financial advisor” I’m not talking about your know-it-all

brother-in-law or your accountant. I’m talking about a broker

or financial planner (or other licensed professional) who has a

proven track record of making his clients money and is an expert

on IRAs, 401(k)s, mutual funds, etc.

 

The best way to find a good financial advisor is to ask for

referrals from your most successful friends and associates.

Find the richest, stingiest man in town and ask who his advisor

is. Meet with several advisors, explain your situation, and ask

for their recommendations. You should also make sure the

advisor is a good fit for your personality and your business.

If all goes well you will be doing business with this person

for many years to come, so make sure the relationship feels

comfortable to you and that you are confident in the advisor’s

ability to manage your money.

 

Let me give you a quick overview of a few of the retirement

plans available to small businesses so you at least have an

idea of what’s out there before you start your search for a

good financial advisor.

 

As a small business you basically have three types of

retirement plans that you can take advantage of: the

Self-Employed 401(k); the Simplified Employee Pension Plan or

SEP IRA, and the Savings Incentive Match Plan for Employees or

SIMPLE IRA. Each allows you to make pre-tax contributions to

the plan, which lets you save for retirement and lessen your

taxable income by the amount of the contribution. Your

investments also grow tax-deferred until withdrawal.

 

A Self-Employed 401(k) is an option for self-employed

individuals or business owners with no employees other than a

spouse. The business can be a sole proprietorship, a

partnership, or a corporation, including S corps. You can make

salary deferrals to this type of plan of up to $14,000 for

2005.

 

Next is the Simplified Employee Pension Plan or SEP IRA. A SEP

is an option if you earn a self-employed income from a full or

part time business, even if you are covered by a retirement

plan at your fulltime job. A SEP allows you to contribute up to

25% of earned income, up to $41,000 for 2004 and $42,000 for

2005.

 

My preferred type of retirement plan is the Savings Incentive

Match Plan for Employees or SIMPLE IRA. The SIMPLE IRA was

created to make it easier for small businesses with 100 or

fewer employees to offer a tax-advantaged, company sponsored

retirement plan.

 

With a SIMPLE IRA you and your eligible employees may

contribute up to 3% of earned income (with a maximum

contribution of $10,000) on a pre-tax basis to individual

SIMPLE IRAs. You must deduct Social Security and Medicaid from

your gross income, but you can then make your SIMPLE IRA

contribution before other taxes are levied, effectively

lowering your taxable income.

 

As the employer you must make “matching” or “non-elective”

contributions into your employees’ SIMPLE IRA accounts.

Matching contributions means that the business matches the

elective deferral contributions made by employees. For example,

if the employee opts to contribute 3% of his salary to the plan,

the employer must match the 3% contribution.

 

At first you might cringe at matching your employees’

contributions, but as the business owner and an employee

yourself this can be great news. As an employee of your own

business you can contribute up to $10,000 to your SIMPLE IRA

and the business can then match your contribution

dollar-for-dollar, which means that you can put up to $20,000

in tax free dollars into the plan per year. The cost of the

contributions is also deductible as a business expense.

 

The non-elective contribution option requires that the company

contribute 2% of every employee’s earned income to the plan on

the employee’s behalf regardless of whether or not the employee

contributes to the plan himself. For 2005 the maximum

contribution you would be required to make is $4,200.

 

Like a traditional IRA, you can withdraw money from a SIMPLE

IRA at any time; however distributions within the first two

years of participation are subject to higher early withdrawal

penalties than traditional IRAs or Roth IRAs. Withdrawals

within the first two years are subject to a 25% early

withdrawal penalty. Withdrawals taken after the first two years

are subject to a 10% early withdrawal penalty.

 

As the employer, the advantages of a SIMPLE IRA include:

company contributions to the plan are tax deductible as a

business expense; plan documents are simple and easy to

administer; administration costs are low; and there is no

government reporting required by the employer.

 

The advantages of a SIMPLE IRA for your employees include:

contributions are immediately 100% vested; contributions and

earnings are tax-deferred until withdrawal; employees can

contribute 100% of earned income up to $10,000 for 2005; and

employees can direct their own investments within the IRA.

 

This is a complex topic and I’ve just tipped the iceberg here,

but hopefully this will give you enough information to get the

investment ball rolling.

 

Here’s to your success!

 

Tim Knox

About The Author: Tim serves as the president and CEO of three
successful technology companies and is the founder of
DropshipWholesale.net, an online organization dedicated to the
success of online and eBay entrepreneurs. Related Links:
http://www.prosperityandprofits.com
http://www.smallbusinessqa.com http://www.dropshipwholesale.net
http://www.30dayblueprint.com

Article Source: http://www.articlepros.com

Auto Loans: Don’t Dig A Money Pit In Your Garage

Choose the wrong auto loan and you might drastically increase

the chances of defaulting and losing your car. Find out

step-by-step how to avoid a money pit.

 

Car loans are certainly less costly than home mortgages,

student loans, or other kinds of loans. So why do so many

people end up defaulting and losing their cars? Find out these

hidden dangers:

 

Biggest Hidden Car Loan Danger: The Inherent Money Pit

 

Unlike home mortgages, student loans or other big-ticket loans,

car loans are inherently money pits. A house can build equity;

higher education can increase earning potential; even jewelry

can sometimes be re-sold for as much as was paid for it. If you

borrow to buy one of those things, you may eventually get a

return on investment. But every single car loses significant

value and keeps losing it as time goes by.

 

Solution: spend as little on your car as possible.

 

Of course, in order to spend as little as possible over the

life of the vehicle, you need to get a well-made,

fuel-efficient car, rather than the one with the lowest price

on the windshield.

 

But a pickup truck, SUV, sports car, or “luxury” model is a

guaranteed money-loser. Don’t worry about what other people

will think. Think about it: when was the last time you saw an

expensive automobile and thought, "I really like and respect

whoever owns that!"

 

The best buy? Many economists actually recommend buying a used

car that's a year or two old. That way you can actually benefit

from the fact that cars only drop in value. Even a car that’s

just six months old may offer you a substantial savings. Just

have it inspected thoroughly so you don't lose what you've

saved on maintenance payments.

 

Hidden Car Loans Danger: Dangerously High Monthly Payments

 

Unfortunately, most people never figure out the total cost

before signing on the dotted line. They end up staying up late

at night trying to figure out how to make ends meet. They live

in smaller houses. They skip going out at night. They don’t go

on vacation.

 

All that sacrifice to have a brand-new SUV in the driveway!

 

Take a hard look at your finances, and figure out how much you

can pay total each month for your car. Be sure to take into

account insurance, tax, maintenance, and fuel. Usually, when

people actually do calculate the total monthly cost of the car

they’re considering buying, they’re amazed by how high it is.

 

How Much Car Debt Can You Afford?

 

1) Make a list of your average monthly non-car expenses, and

subtract them from your earnings.

____your monthly after-income-tax income

-___any other taxes

-___housing (including any fees and property taxes, and

utilities)

-___food

-___health insurance or HMO

-___life insurance

-___debt payments

-___401 (k), IRA, or other long-term savings

-___short-term savings

-___telephone, cellular phone, cable, internet, etc.

-___entertainment and fun stuff (be honest!)

-___cost of yearly vacation(s) divided by 12

-___other expenses

 

= ____what you can spend on a car

 

2) Subtract your monthly car-related expenses from the amount

you have left over from your other expenses.

 

___What you can spend on a car (from above)

-___Amount you’re spending per month on gas (raise or lower

this figure depending on whether you are getting a car with

higher or lower gas mileage).

-___Monthly maintenance (remember: your new car won’t stay new

long, so maintenance will be an issue).

-___Monthly insurance (remember that for a new car, your

insurance premiums may go up).

-___Tax.

= ____ Maximum monthly loan payment.

 

Now plug the number above into a vehicle loan rate calculator

to figure out big of a car loan, and how much interest you can

afford.

 

Final Hidden Auto Loan Danger: Unnecessarily High Rates

 

If you simply take the first loan the dealer offers you, you

are probably paying too much. Do some comparison shopping on

the internet, and bring a list of the best loans with you when

you negotiate loan terms with the dealer.

 

Don’t let the dealer cheat you by shifting the cost from the

car loan to the car price to the deal on your trade-in. Make

sure you get a good deal overall.

 

Congratulations! You now are far better prepared to stay out of

an auto loan money pit than the vast majority of car buyers. Now

you’re ready to go shopping for a loan.

Joel Walsh is a regular contributor to
cars-auto-loans.com. Read his other articles, with even more
information on getting the best car loan.


Article Source: http://www.articlepros.com

How to Make Money from Information Products

What is an information product?

The simplest definition is an info-product is any product

that teaches something, or provides information.

That could include a book, audiotape, class, seminar,

computer program, or report. Before the internet,

information products were expensive to develop and

extraordinarily difficult to distribute. Publishers,

agents, engineers, classrooms, advertising all had to be

taken into consideration.

The internet streamlines the process of distribution. Books

and courses can now be downloaded immediately, without the

costs of middlemen, production, and mailing. The upside is

greater access to information to everybody. But because

virtually anyone can create a product, the quality of all

this information is less controlled. Caveat emptor.

Thankfully, our discussion today is not about ethics or

quality.

The goal here is to get you thinking about what you could

create.

Online types of information you could develop and sell

include:

• Electronic books or e-books

• An e-course—which consists of a series of email lessons

people receive over a

period of time

• Teleclasses or teleseminars—which are group seminars held

over a telephone

bridge line.

• Audio CDs, data CDs, or multi-CD programs of seminars or

interviews you’ve given

• Special reports available for download from your website

• Combinations of the above

Why would a service professional want to create an

information product?

First, to increase their credibility. A personal injury

attorney fights an uphill battle to appear ethical. A

complimentary report to all inquiries on how to identify if

a case has merit would begin to establish the attorney as

credible and competent. It might also shorten the lead and

intake time, while providing a valuable service to the

client.

I took a class years ago in basic auto mechanics, just to

avoid getting scammed. The man who taught it had his own

shop in auto maintenance. Who do you remains my mechanic 18

years later? By giving away “trade secrets,”  Mike proved

his trustworthiness to me.

And of course we know a published book immediately

establishes its writer as an expert. The online equivalent,

or e-book, is generally self-published, but still goes a

long way toward enhancing expert status.

Second, an info-product can help you create multiple income

streams. Because most of these can be downloaded any time

of the day or night, without any input from you, you could

literally make money while you sleep. It takes time to

advertise and promote your products, so you may not want to

quit your day job just yet. But the idea is that once

you’ve got the product out there, 90% of your work is done.

There are 3 questions you want to ask if you’re thinking

about creating something?

One, who is your target market? For example, although women

in transition includes about 50% of the planet, women who

like to develop gardens on their fire escape is a bit more

targeted and therefore far easier to market. Make sure your

information is relevant and interesting to your market. In

1995, this article would not have been perceived as

worthwhile to most people. But had someone implemented the

information, they would have become very wealthy.

Two, what does this audience want and need? If they don’t

want it, it doesn’t matter how much they need it—there’s no

sale. You should not only know a lot about what your

audience wants, but you should love it. It’s truly no fun

to write about something you’re dispassionate about. I did

it for years, and I’ll never choose or need to do it again.

 

Three, what are the specific benefits you want to provide

your reader? I’m going to be so bold as to suggest there

are only ten benefits anyone actually wants, if that, so

you don’t need to rack your brains here.

What are the benefits? Jim Daniels listed them in his great

e-book entitled “E-book Secrets”:

Make money

Save money

Save time

Avoid effort

Increase comfort

Increase cleanliness

Increase health

Escape pain

Increase praise

Increase popularity

Once you’ve figured out your target market, the benefits

you want them to receive, and the appropriate delivery

format, you need to think about presenting your information

in an original way.

How can you present what you know in a way that is unique?

You’re not expected to create ground breaking information,

but try to present what you know in a different way from

others. Sometimes we need to read the same information a

dozen times before we get it. What causes something to

resonate with someone could be a variety of things: the

voice, the style, the format in which it’s presented.

Experiment with what works for you.

Self-Employed Professionals:
For more information on building your business using the
internet, see www.ServiceBusinessCoaching.com

Article Source: http://www.articlepros.com

Apache, Mysql & Php For Windows

"Even if you are a seasoned PHP, MySQL and Apache guru, the

checklist below will still be helpful in your installation

process."

 

Apache, MysQL and PHP for Windows could be a nice nice thing to

have on your Windows workstation. You could try and experiment

with all kinds of nice PHP and MySQL based applications right

on your Windows desktop running Apache, instead of having to

access a full-featured server.

 

Most people have Windows as their workstation and it can be

sometimes difficult to switch to another operating system. So,

you may have always wanted to run PHP applications on your

Windows machine but wondered if it is too difficult to install

or if the hassle will be worth it.

 

This article gives you the essential information to get started

right away. Even if you are a seasoned PHP, MySQL and Apache

guru, the checklist below will still be helpful in your

installation process.

 

There are lots of 3rd party software that bundles Apache, MySQL

& PHP in one package and installs them on our computer. We do

not recommend this and suggest that you directly get Apache,

MySQL & PHP from their official sites.

 

Apache

 

1. Get Apache 1.3.33 from here:

http://httpd.apache.org/download.cgi.

 

2. Choose a mirror close to you and in the same page, look for

the Win32 Binary (Self extracting) file:

apache_1.3.33-win32-x86-no_src.exe.

 

3. Download the file and save it on your hard disk. Run the

installer and the self-extracting wizard will guide you through

the rest of the steps. Choose all the default settings and run

Apache as a service.

 

4. Remember to put "localhost" when asked for a Server

name/Domain name. Use "administrator@localhost" when asked for

the administrative email account.

 

5. Now point your browser to: http://localhost and you should

see an Apache Test Page.

 

6. You can change this page by creating an "index.html" page

here "C:Program FilesApache GroupApachehtdocs".

 

7. You can manually start and stop the Apache server. In a

Windows command prompt, type "net stop apache" or "net start

apache".

 

 

MySQL

 

1. Get MySQL 4.1.7 from here:

http://dev.mysql.com/downloads/mysql/4.1.html

 

2. Under the Windows downloads section, choose Windows

Essentials (x86) and click on the Pick a Mirror link.

 

3. Download the file mysql-4.1.7-essential-win.msi and save it

on your hard disk. Run the installer and the self-extracting

wizard will guide you through the rest of the steps. Remember

the root password when prompted for it in the installation

process.

 

4. Once the installation is done, on your Windows toolbar, go

to "Start->Programs->MySQL->MySQL Server 4.1->MySQL Command

Line Client".

 

5. Type the root password and you should be logged in to the

MySQL shell.

 

6. Type "show databases;" to see the list of databases. Type

"quit" when you are done.

 

 

PHP

 

1. Get PHP 4.3.10 from here: http://www.php.net/downloads.php

 

2. Under the Windows Binaries section, choose the file: PHP

4.3.10 zip package size 7,405Kb dated 15 Dec 2004.

 

3. Download the file and save it on your hard disk. Unzip the

file and rename the extracted folder to "php". Now move this

folder "php" and place it under "C:Program Files".

 

4. Move all the files under "C:Program Filesphpdlls" and

"C:Program Filesphpsapi" to here: "C:Program Filesphp".

 

5. Copy the file php.ini-recommended to "C:WINDOWS" and rename

it to php.ini

 

6. Edit your Apache "httpd.conf" configuration file located

here: "C:Program FilesApache GroupApacheconf".

 

7. Add the following lines in httpd.conf:

 

LoadModule php4_module "C:/Program Files/php/php4apache.dll"

AddModule mod_php4.c

AddType application/x-httpd-php .php

 

8. Now stop your server by issuing the following command in

Windows command prompt: "net stop apache". Then type "net start

apache" to start your server. We are now going to test the PHP

installation.

 

9. Go to "C:Program FilesApache GroupApachehtdocs" and

create a file test.php

 

10. Edit test.php and add the following code:

 

<? php

phpinfo();

?>

 

11. Point your browser to http://localhost/test.php and you

should see a lot of PHP configuration information.

 

Congratulations! You now have Apache, MySQL and PHP installed

in your computer. Now you can install your favorite script

right on your Windows workstation.

Sanjib Ahmad, Freelance Writer and Product
Consultant for Business.Marc8.com
(http://business.marc8.com/).

Article Source: http://www.articlepros.com

Make Money With A Business Opportunity Online

There are so many business opportunities these days that promise to help you make money online. What should you do to choose one? Here are some tips to help you with your decision.

1. Find a business opportunity online that actually makes money. This isn’t hard to do. If the business opportunity has products that you would actually want to buy, then this might be an ideal opportunity for you.

2. Figure out a niche that will go with the business opportunity you have chosen. You may sell frying pans, but your customers will think you give away recipes that use a frying pan, and you recommend a good frying pan to use!

3. Making money with a business opportunity online that actually has a website. Some business opportunities actually provide a website for you to use. Use it! Less effort on your part and you can concentrate instead of bringing in visitors.

4. Don’t join a business opportunity that promises you will make money but doesn’t have products. If the only things you do for a business opportunity is recruit others to the business opportunity, this isn’t a great way to make money.

5. Take a step back for a moment and look at the market. Can you compete with the other companies out there? There is always a way but if you’re looking to become the next Wal-Mart, there is no way you’ll make it. Instead, try to be the best soap making company or whatever you’ve set your goals to.

6. Study others in the business opportunity you are looking at and ask them how much money they make at it. Ask them how business seems to go. Don’t ask one person, ask two or three or as many as you can get your hands on.

7. Ask people before you sign up for a business opportunity about the business and the products. If people have had a bad experience all around with this company, why would you want to join it?

8. Make sure that when you do get involved with a business opportunity that you don’t just sign up and do nothing with it. You must work to make the money you want with that business opportunity.

9. Take in a consultant to help you with your first steps. It may be an added expense but it will sure help you along the way.

10. Take care to do what it is you want to do. Don’t get swallowed up in all the hype. If you won’t buy it, don’t sign up for it. Take a day or two to think about a business opportunity you just heard about before taking the next step.

All in all, trust your gut instincts. If it sounds too good to be true, it probably is. Joel Teo is the owner of the Money Making Directory which boasts of money making tips, recommendations and resources to help ordinary people make money online. Signup for his free newsletter today at http://www.MakeThousandsToday.info and receive his complimentary “7 Insider Secrets to making money online” Course.


Article Source: http://www.articlepros.com

Detect and Remove Spyware

The increasingly common computer and internet threat known as spyware is designed to gather information about personal and business computer users. The private information spyware is capable of obtaining about you can include your click stream, usage habits, passwords, credit card number and social security information. It is almost guaranteed that all PC computers have been infected with spyware.



A spyware infection is not primarily intended to alter a computer's function but as a "side effect" your computer will begin malfunctioning in obvious ways when some types of spyware invade. Possible signs include continuous pop ups, browser crashes and unauthorized start page changes. Users who have downloaded music and game programs are likely to have been infected as well as those who use shareware and/or freeware.



To clear your computer of malicious spyware computer users must download or purchase one of the many spyware scan tools. Proven and effective spyware tools can scan your computer and catch spyware, adware, keyloggers, dialers, Trojans, malware and more. Once the infected files are identified the spyware scan tools can safely remove them while keeping a back up of the file in case restoration is needed later. Spybot Search and Destory has become one of the most advanced and used free spyware scanning tools. Spy Doctor can be purchased and begin actively protecting against future spyware infections.



You computer should be scanned for spyware infections on a regular basis so as to avoid serious problems that could arise from deep infection. Nearly any of the many anti-spyware programs include free updates that will bring the program's database of spyware definitions to the latest known for ultimate computer protection. Finding and using a good anti-spyware tool will help protect your private information from being snatched and used against you. Spyware removal tools will also stop annoying and intrusive advertisements from interrupting your internet activity.Mitch Johnson is a successful freelance author that writes regularly for http://www.spyware-removal-made-easy.com/ , a site that focuses exclusively on spyware removal software, as well as tips on how to prevent spyware from popping up on your computer. This site articles on has spyware guard, http://www.spyware-removal-made-easy.com/spyware_guard.htm as well as spyware scanner, http://www.spyware-removal-made-easy.com/spyware_scanner.htm

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Insomnia: Stop the Frustration

A sleep disorder that has affected many people world-wide, insomnia is unfortunately quite common in today. But the consequences brought on by insomnia may not be as ordinary as they seem.



The frustration of repeatedly looking at your clock while moving around in your bed can be emotionally and physically draining to say the least. The tension builds up to its peak when you see the sun rise, and you go to the office lacking energy after experiencing a sleepless night.



You don't have to suffer anymore. Here are some tips to help you sleep peacefully and faster than you could ever expect.



1) Don't eat within 4 hours before you go to bed. In case you go hungry, try some crackers, an apple or a light snack. But don't indulge in an "all-you-can-eat" feast right before bedtime. Your food won't be digested properly, resulting in poor and uncomfortable sleep.



2) Don't drink caffeine or alcohol. Caffeine can hinder your ability to sleep. Alcohol can make you drowsy, but it can wake you up in the middle of the night and bring on side effects that will adversely affect a peaceful night's sleep.



3) Develop a consistent routine of waking up and going to bed at the same time everyday, even on the weekends. Some insomniacs tend to sleep at any time of the day to catch up on some sleep they lose during the night. This is the one of the biggest mistakes you can make if you're looking to sleep peacefully. It alters your body clock and will only worsen your insomnia. If you can't sleep one night, get up at the usual time the next morning. You'll be sleeping soundly the next night.



4) Relax, stay healthy and fit. Avoid a stressful lifestyle. Engage in activity and exercise daily to release tension. Practice deep breathing exercises to relax your body often.



5) Don't force yourself to sleep. Trying your best to sleep requires some work. You don't want to work when you want to doze off. Sleep comes best if you are in a relaxed and comfortable state. Just lie down, relax, and let yourself fall into sleep naturally.Mark Idzik reports on natural and alternative health and is the editor of Sound Sleep Right Now. Visit his site at http://www.SoundSleepTips.com for more sound sleeping tips and ways to achieve peaceful, rested sleep.

Article Source: http://www.articlepros.com