Lets Talk Money Online - Making your one-person business a success

Are you a one-person business or sole proprietor? Whatever you call it, you're running a business. While running your company can present challenges, it also may offer cost-efficient opportunities to make sure you're properly insured and putting money away for retirement, depending on the company's legal structure. Here's a primer on financial products that can benefit you and your family, possibly using business dollars.

The answer to that question comes in three varieties: life, disability and health. All three types of insurance can help protect your family financially from unforeseen circumstances. If you can buy group insurance, your costs may be lower compared to buying these financial products individually.

Life insurance is the foundation of financial security for many families, and it can be cost-efficient when purchased as a group policy. Typically, group life insurance is term insurance -- it doesn't normally offer cash value. You might supplement this with individual permanent life insurance if needed.

Group disability income insurance is another important piece of your family's total financial protection. Subject to certain conditions, disability income insurance replaces a portion of your income should a qualified disability prevent you from earning a living, either in your occupation or any occupation, depending on the policy.

And don't forget the importance of health insurance, especially if you have a family that depends on you, as health care costs continue to rise. You may qualify for a group health insurance policy that at least partially pays for coverage for both you and your family.

Your business may also be eligible to sponsor a retirement plan; the type depends on how your company is set up. The Simplified Employee Pension (SEP) plan has been a popular way to put money away for retirement because of its ease to set up and maintain, as well as its cost. However, 401(k) plans have come down in cost for smaller businesses, giving you alternatives if you are looking to put tax-advantaged money away for retirement.

Whether your company can deduct the costs of sponsoring the plan or not, your individual contributions may be tax deductible and potential growth is tax deferred until you take distributions.

Whether dealing with insurance or retirement savings, talk to your financial professional to learn more about how these financial products might benefit you and your business.

This is an advertisement prepared by LTM Publishing, Inc. for the use of the sender. The advertisement provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsoring this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher does not assume liability for financial decisions based on the newsletter's contents. Great care has been taken to ensure the accuracy of the newsletter copy at press time; however, markets and tax information can change suddenly. Whole or partial reproduction of Let's Talk Money® without the written permission of the publisher is forbidden. ©LTM Publishing, Inc., 2010.

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