Peak Earner · Ages 40–49 · 7 min

Business Ownership & Wealth

Whether you own a business or are thinking about it, the tax and wealth-building implications are significant. Business owners have access to tools employees don't.

Key Decisions at This Stage

→Decide your business structure: sole prop, LLC, S-corp — each has tax implications.

→Set up a SEP-IRA or Solo 401k if self-employed.

→Consider key-man insurance to protect your business (and family) from your death or disability.

Concepts You Need to Know

SEP-IRA

Simplified Employee Pension. Self-employed individuals can contribute up to 25% of net self-employment income (max $69,000 in 2024). Far more than a standard IRA.

Key-man insurance

Life/disability insurance on a critical employee or owner. The business is the beneficiary. Covers the cost of replacing a key person and protects against business disruption.

Buy-sell agreement

A legal agreement between business partners specifying what happens if one partner dies, becomes disabled, or wants to exit. Usually funded with life insurance.

Take Action Now

If self-employed, open a Solo 401k or SEP-IRA immediately.

Review business entity structure with a CPA for tax optimization.

Discuss key-man coverage with your agent if others depend on your business income.

Want a personalized plan?

Connect with a licensed agent who can apply these concepts to your specific numbers.

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