As a small business owner, it’s vital that you pay attention to key financial questions as you approach retirement. Here are some of the items tire dealers should check:
Health Insurance. Are you among the lucky few who will continue to be covered after retirement? If not, you’ll need to replace the coverage. If you will be eligible for Medicare, you may want to start checking up on “Medigap” coverage.
Tip: Before you retire, take care of any non-emergency medical, dental or optical needs (if your employee plan coverage is broader than Medicare).
Other Types of Insurance. Once you retire, you may need to replace employer-provided life insurance with extra coverage. You also should consider purchasing long-term health care insurance in case of a lengthy nursing home stay in the future.
Social Security. Decide whether you want to take early Social Security benefits if you’re retiring before your full retirement age. You can get 80% of your benefits at age 62.
Tip: For most people, taking Social Security benefits at their full retirement age makes the most financial sense. If you think you might need to take early benefits, be sure to discuss this with your financial advisor.
Company Plan Payout. You should plan well in advance how you’ll take the payout from your pension plan or 401(k) plan. Will you transfer the funds to an IRA? How will the funds be invested?
Relocation. If you’re planning a move to another state, explore the financial ramifications of living there before you move.
Tip: If you’re relocating, it might be wise to buy the new home before retirement.
RichardL. Lipton CPA & Associates LLC, located in Florham Park, N.J.,draws on its founder’s 10 years as a stockholder and manager offamily-owned Sam’s Tire Co. in Paterson, N.J.
RichardL. Lipton CPA & Associates LLC “is structured to personally servelarge and small clients who have a need for business consultingservices as well as accounting and tax services. We have even developeda niche in the area of forensic accounting. Our clients have realizedthat this combination of skills is extremely valuable in providing thehighest quality professional services in today’s and the future’seconomy.” – Richard L. Lipton CPA
Contact Richard L. Lipton CPA & Associates LLC:
E-mail: [email protected]