Published Tuesday, December 2, 2014 at: 7:00 AM EST
We frequently read these days about college graduates being unable to find employment in the fields for which they studied and then, as a result, have to seek jobs for which they are overqualified.
As a parent, have you ever thought about trying to help your college graduate son or daughter open his or her own business? An adult child does not have to be a college graduate, of course, to open a new business.
Operating a business does require certain skill sets and personality characteristics, but many people possess such skills and traits: independence, energy, desire, and the ability to think and concentrate. Hiring a good attorney and accountant also helps.
Opening a business does carry a heavy risk of failure. About half of all new businesses fail within five years or less. You can search the Internet for the reasons startups fail. But with proper planning, and execution of that planning, the risk of failure can be reduced greatly – if not eliminated.
So, as a parent, what can you do to help your child open and operate a successful business?
First, think small; big can come later – with success. Many different businesses can be started for $500, or even less. Second, you may have to shell out a few bucks. And, third, consider letting your child stay in the nest a little longer, until he or she can get a business going.
Here are but a few types of businesses that can be opened on the cheap:
You can search the Internet for "how to operate a business successfully," and just about any other topic you can imagine. For starters, you can search on "best small businesses to open."
The writer of this article quit an upper-echelon editorial job with a large daily newspaper in order to open a business-writing service, a risky venture at its best. He spent $135 for a used desk, $30 for a two-drawer filing cabinet, $10 for a telephone extension cord, and about $8 for stationery. His gross income soared into six figures in less than five years. It can be done, and we are here to help you.
This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.
An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.
Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).
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