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Entrepreneurship: The New Retirement

Want to put your experience and wisdom to work? America’s idea of retirement has changed significantly over the last several years. A recent Motley Fool survey indicates nearly half of Americans think of their retirement as including a continuation of work.

Some people need to keep working after retirement. Other people may just not be ready to kick back and relax. Whatever the reason, new retirees are increasingly making the transition from working for someone else to working for themselves.

Just how common is this new wave of silver-age business owners? According to the Ewing Marion Kauffman Foundation, 23.4% of new small business owners are between the ages of 55 and 64. The AARP estimates nearly 40 million people over the age of 50 are strongly considering entrepreneurship.

If you or a loved one are considering one of these “encore” careers, you likely have a lot of concerns and may not know where to turn. As a Timberland Bank customer, you have a financial partner and resources to help solve these problems.

We can help answering questions like:

How do I separate my business funds from my personal funds?

This is a great idea for a variety of reasons. When it comes time to pay taxes, having a detailed record of your business costs can save you a bundle. Everything about business accounting is simplified by a separate business checking account.

Fortunately, a business checking account from Timberland Bank can make a new business owner’s life easier. Every business has to exist in two ways: as a service provider and as a financial entity. A business checking account from Timberland Bank can provide a solution in the financial health of your business.

Where do I go to get funding?

Whether you need product development, market research or advertising, funding a new business can be a financial investment. Using your retirement nest egg to fund the start-up costs might be too risky or may not be feasible. For some accounts, like 401(k)s and IRAs, withdrawal limits may make taking the start-up funds out prohibitively expensive.

You need ways to manage that risk. Finding a way to balance the costs from your business with your need for retirement security is potentially challenging. Keeping costs low is a good place to start, but a small business loan from Timberland Bank is an excellent avenue to meet your initial  investment needs. 

What do I do about taxes?

This is something most small business owners never consider until it’s too late. When you work for someone else, your federal income taxes are withheld automatically. You may need to make a small catch-up payment in April to account for a spouse’s income or other sources of income, but they never break the bank. When you work for yourself, no one takes care of those payments throughout the year for you.

This is where Timberland Bank's cash management services can help. You can set up a savings account to automatically deduct weekly payments from your business checking. The funds in the savings account will cover the bill when taxes come, and, in the meantime, you can even earn dividends on the money you put away.

Starting a small business can appear overwhelming at first. It takes a significant amount of planning, knowledge, skill and hard work. While only you can provide the drive and ambition that’s necessary to succeed in a small business, Timberland Bank can help with the financial knowledge to help you feel more in control. Speak to a local Commercial Loan Officer about planning your entrepreneurial adventure today.

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