1. Retirement Issues for Small Business Owner 1) Value of the Business Selling outright Liquidating Passing on to family Value/Net Worth of the business, many times, is the most valuable asset of the business owner

2. Retirement Planning Individual is responsible for retirement income Example Age 25, retire 60, live to 85+, need 80-90% of income $2,000,000 goal Maximum social security benefit = $1,742/month Saving goal $870/month, starting at age 25 $2,103/month, starting at age 35 $5,800/month, starting at age 45

3. Investing IRS provides many tax-deferred or tax-free investment accounts IRA – Individual Retirement Account Deductible Non-deductible Roth SEP – simplified employee plan Less than 25 employees, 15% of compensation, maximum $22,500/annually per person

4. Investing Other accounts KEOGH plan SEP IRA Simple IRA Individual must choose investment options Stocks Bonds * Mutual Funds

5. Other Benefits Medical $5 deductible, prescription $690/month, $8,280 for family of 4 Dental Preventative Restorative Disability Insurance 66% of $50,000, age 30 $240/month, $2,880/annually

6. Other Benefits Life Insurance $500,000 face value, age 35, nonsmoker, good health Term insurance - $860/year Time Off Vacation, sick, personal time Average small business owner works 74 hours per week Takes 4 weekdays off