Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Transform Your Retirement Strategy & Build a Secure Financial Future.

Name: Painting Biz Owners: Transform Your Retirement Strategy & Build a Secure Financial Future.
Uploaded: 2024-12-17T14:15:03+00:00
Duration: 58 s
Channel: Daniel Honan
Description: In this concise instructional segment, the presenter outlines a step‑by‑step retirement‑saving hierarchy tailored for painting business owners and other…

17 Dec 2024 · 1 min

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In this concise instructional segment, the presenter outlines a step‑by‑step retirement‑saving hierarchy tailored for painting business owners and other small‑business entrepreneurs. First, he advises contributing to an employer‑offered 401(k) only up to the company match, capturing free money. Next, he recommends maxing out a Health Savings Account (HSA) if the owner has a qualifying high‑deductible health plan, emphasizing its double‑tax advantage (pre‑tax contributions and tax‑free medical withdrawals). After the HSA, the speaker suggests funding a Roth IRA, highlighting its tax‑free growth and tax‑free withdrawals in retirement despite no upfront deduction. Finally, if additional savings capacity remains, he advises establishing and maxing out a business‑specific retirement plan—either a 401(k) or a SIMPLE IRA—for the owner’s company. The overall message is a clear, prioritized roadmap to maximize tax efficiency and retirement security.

Chapters

give you my quick list how we should be saving for retirement. If you work for an employer who offers a match, you want to contribute to your employer's 401(k) up to the match. Take every dollar that they're willing to give you. That's free money. Once you get the full match, you're going to stop. You're going to put your retirement dollars in other places that are more efficient. The second place you're going to go is your HSA, health savings account. You have to have an HSA insurance plan. You can open up an account where money goes in tax-free. You can use it to pay for medical expenses tax-free. That's double dipping. One of the only times you can do that legally. Once you get your employer match, I suggest maxing out your HSA. After the HSA is maxed out, we're going to look at the Roth IRA. Roths are awesome. Even though you don't get any tax break immediately, that money's going to grow. It's going to come out in retirement completely tax-free. If that's not enough, we still have money we want to put away. That's when we're going to establish a 401k or simple IRA for our company. Going to max that out.