Where Should a Small Business Owner Invest Their Money?

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[huqiro]

in my current small business I am making an average of 80% profit per item, I was wondering if I should focus on reinvesting more profits into business instead of investing into an individual taxable account or Roth IRA to compound my money into the business instead of the stock market

[RN-tskq]

Hi guys, is there any way to value a military or other federal pension into your net worth? Using the four percent rule, I would need $500k or so to create the monthly payment I’ll receive from my reserve pension at age 59 1/2. But of course the pension will die with me or my spouse (whoever goes last), so I won’t be able to leave it to heirs the same way I could the $500k. Any thoughts on this?

[michaelswami]

How about investing it back into the business. My businesses are growing about 7% per year in customer base and revenue is up 15% annualized over the last 5 years. I doubt I could get those returns on investment consistently through indexed target retirement funds.

[j.mney]

Roth IRA is my go to investment vessel. Can’t beat tax free growth! 😀

[kevinschultz]

I'm probably going to be setting up a SEP-IRA for 2020 - I've been renting out my condo to a friend, and (technically) make 12k/year profit on it (I actually make 24k, but half of that goes to taxes and HOA fees). Yeah, I can only put in 2k or so into it (as you're limited to 20% or 25% of your profits, depending on the setup), but that's better than paying my marginal tax rate on it...

However, from what internet research I've done, the SEP-IRA is good because I still have a standard 401k through my job, as such the other options don't really work for me. However, it's at this point that I probably need to talk to an accountant, as up until now I've never really thought of it as a "business" - so I'll need to investigate that side of things more.

[djpuplex]

Wife just quit her job and now has a hobby job 🤣 poor guy.

[saulgoodman]

I would not invest any business income. Only my income.