Coaching Career Paths and Retirement

[foibles]

If you cannot (or choose not to) build equity in your business, it might be wise to consider finding ways to build it in yourself through some type of investment portfolio.

Also, no one has yet mentioned that the self employed have access to a special 401k.
It's often referred to as a 401k-solo. You can roll the 401k's from previous employers into it if you wish.

One of the useful things about a 401k Solo is that you can make whatever deposits needed at years end to put you into a lower tax bracket.

For the younger coaches it might be wise to keep an eye out for any wealthy single fencing moms that might cross your path. One that knows a good deal about personal investment portfolios or sompin' might be nice...

[MdA]

Thanks for the info on 401k solo....and the traditional plan.

[fencerX]

Also, no one has yet mentioned that the self employed have access to a special 401k.
It's often referred to as a 401k-solo. You can roll the 401k's from previous employers into it if you wish.

One of the useful things about a 401k Solo is that you can make whatever deposits needed at years end to put you into a lower tax bracket.

Actually, with a 401k "solo" (aka individual 401k), as with a SEP-IRA, you can make whatever deposits needed even *after* the year's end to lower your taxes. The deadline for contributions is your tax filing deadline, including extensions. So this allows until Apr 15 or Oct 15th 2012 to get deductions for 2011's taxes.

While SEP-IRAs and individual 401ks have much in common there is one significant difference ... the deadline for setting up a 401k solo is Dec 31, so it's too late for 2011. However an SEP-IRA can be set up for a year as late as the due date (including extensions) of your income tax return for that year.

[jfarmer]

Jason's comment is actually spot on. If you look at a fencing club/salle as a business, then concerns about retirement, exit strategy, etc. are the same as any small business owner.

To offer some practical advice, you need to take some time, probably on a yearly basis, to sit down and answer some basic questions about your plans and the business itself. Some of these would be: Where do I see myself 5, 10, or 20 years from now? What about the club? If I had to divest myself of the club today, this month, or within a year, how would I do so? What would I receive? If I sold it, who would be the buyer(s)? And there are a bunch of other questions...

Most of those answers are going to change over time, depending on size of club, your age, partners, etc. The answers for someone in the their 20's are going to look very different than the answers by someone in the 50's (like me :-)). The important part is that you have to think first as a business owner, not as a coach. (eg. What do you as the Biz owner do when you, as the coach, wrecks a knee?)

And addressing one point specifically, Buying a building vs. renting space. There are pros and cons for both, but one thing shouldn't hold you back is the question "But we want to outgrow this space! If we own it what then?" Well, they have these business people that will help you buy or sell, or rent real estate. Hmm, I wonder what they would be called... As an aside, the space was used for something else before you turned it into a salle, right? I'm sure it can be something else when you leave... And as the owner, it might just generate an income for you....