Ping: FTE User *Psd Power*
Postmaster
Joined: Feb 2002
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From: Calgary Canada
Ping: FTE User *Psd Power*
BFT250 and PSD_POWER,
I know this isn't what you want to hear, because I fully undertand your financial situations, but I'll share some of my experience with you.
You NEED to buy some disability insurance and you NEED to start putting some money away for retirement. IT IS NEVER TOO EARLY.
Disability insurance is critical if you're self employed, any kind of an accident that prevents you from working for a week or two (or God forbid, long term) can put you and your company in serious financial difficulty. This type of insurance covers any type of lost time accident, whether it's work related or not. I'm not sure how the US system works for Worker's Compensation, or benefits if you are injured on the job, but you should look into this, and get involved in any programs that are offered. Both types of programs are relatively inexpensive, and I can't stress enough how important this is.
The second thing is a savings/retirement plan. I didn't start till about a year ago because I was in the same basic sitution as you guys, it's my biggest regret. Start an RRSP now when you're around 20 and you can retire comfortably at 55. I've seen way to many guys still trimming trees and driving trucks in their late 60's because they can't afford to retire. Start with about 5% of your income, 10% is ideal if you want to retire early as a wealthy man.
For an easy read on retirement savings, try "The Wealthy Barber" by David Chilton. For another more intense read on investing and the stock market that's really good, try "A Random Walk Down Wall Street" by Burton G. Malkiel. Both books cover the basics of saving now to retire early and wealthy.
Some type of group medical insurance is also a really good idea, and can be had relatively inexpensively.
I hope this doesn't come off preachy, I just hate to see young entrepreneurial people that obviously have the drive make the same mistakes I did.
Good luck guys.
Waxy
I know this isn't what you want to hear, because I fully undertand your financial situations, but I'll share some of my experience with you.
You NEED to buy some disability insurance and you NEED to start putting some money away for retirement. IT IS NEVER TOO EARLY.
Disability insurance is critical if you're self employed, any kind of an accident that prevents you from working for a week or two (or God forbid, long term) can put you and your company in serious financial difficulty. This type of insurance covers any type of lost time accident, whether it's work related or not. I'm not sure how the US system works for Worker's Compensation, or benefits if you are injured on the job, but you should look into this, and get involved in any programs that are offered. Both types of programs are relatively inexpensive, and I can't stress enough how important this is.
The second thing is a savings/retirement plan. I didn't start till about a year ago because I was in the same basic sitution as you guys, it's my biggest regret. Start an RRSP now when you're around 20 and you can retire comfortably at 55. I've seen way to many guys still trimming trees and driving trucks in their late 60's because they can't afford to retire. Start with about 5% of your income, 10% is ideal if you want to retire early as a wealthy man.
For an easy read on retirement savings, try "The Wealthy Barber" by David Chilton. For another more intense read on investing and the stock market that's really good, try "A Random Walk Down Wall Street" by Burton G. Malkiel. Both books cover the basics of saving now to retire early and wealthy.
Some type of group medical insurance is also a really good idea, and can be had relatively inexpensively.
I hope this doesn't come off preachy, I just hate to see young entrepreneurial people that obviously have the drive make the same mistakes I did.
Good luck guys.
Waxy
Posting Guru
Joined: Jun 1999
Posts: 2,007
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From: Oregon
Ping: FTE User *Psd Power*
It's never too early to start a retirement program.
Sadly, here in Oregon it's not inexpensive to buy medical insurance and workmans comp, (disability). It can be over $400/mo for medical and the rate for my code on workmans comp. is over $4.00/HOUR WORKED, (steel worker). I guess office workers and burger flippers have pretty cheap comp.
It's a cost of doing business here. You don't have to have it if you own the business, but you can't afford not to if something goes wrong. That's one of the reasons shop rates are going up to $75/hr+
Sadly, here in Oregon it's not inexpensive to buy medical insurance and workmans comp, (disability). It can be over $400/mo for medical and the rate for my code on workmans comp. is over $4.00/HOUR WORKED, (steel worker). I guess office workers and burger flippers have pretty cheap comp.
It's a cost of doing business here. You don't have to have it if you own the business, but you can't afford not to if something goes wrong. That's one of the reasons shop rates are going up to $75/hr+
More Turbo
Joined: Mar 2002
Posts: 633
Likes: 0
From: Oregon USA
Ping: FTE User *Psd Power*
Waxy
I'm one step ahead of you. I have had Aflac dissability and accident insurance for a year now.
I just started a Roth IRA three weeks ago for my retirement.
I also have two life insurance policies.
From what every one has told me it is the right thing to do.
My insurance agent was blowen away when I told him I wanted a retirement plan. Said it was the best damn thing I could do at my age.
Howdy
Do you own your own company? Where about are you in Oregon? I am in marion county (Aurora) Your right about health insurance. I am still on my parents health insurance for now. The only I can get from my insurance company is $117. Thats due to my boss not having a health plan so he gives us 120 bucks a month to buy our own
I'm one step ahead of you. I have had Aflac dissability and accident insurance for a year now.
I just started a Roth IRA three weeks ago for my retirement.
I also have two life insurance policies.
From what every one has told me it is the right thing to do.
My insurance agent was blowen away when I told him I wanted a retirement plan. Said it was the best damn thing I could do at my age.
Howdy
Do you own your own company? Where about are you in Oregon? I am in marion county (Aurora) Your right about health insurance. I am still on my parents health insurance for now. The only I can get from my insurance company is $117. Thats due to my boss not having a health plan so he gives us 120 bucks a month to buy our own
Last edited by PSD_Power; Apr 9, 2003 at 09:55 PM.
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