] (NAPSA)—While the nation’s micro-businesses contribute a significant amount to the economy, they may not contribute enough to their own retirement funds, says a recent survey by the National Association for the Self-Employed (NASE). “The gap between what many business owners say they will need for retirement and what they actually have saved is consider- able—nearly 13 percent have no savings at all and 26 percent have less than $50,000 saved,” said NASEpresident Robert Hughes. “However, nearly 29 percent believe they will need at least $1 million in savings before they can retire.” Here are five questions NASE experts say self-employed business owners should ask themselves whenplanningfor retirement: 1. When Should I Start Saving? The early saver without a plan is better off than the careful planner who delays. Just opening an individual retirement account (IRA) and developing the habit of saving is half the battle. 2. How Much Money Will I Need For Retirement? Start with a list of current bills. Health care costs, the deci- sion to travel extensively or retiring to an active-lifestyle community could add to your retirement budget. While you're still working, plan to payoff all credit cards and installment loans and, if possible, the mortgage. 3. Can I Use Home Equity For Retirement Income? Yes. A reverse mortgage takes a lien against a home’s equity. The borrower—or the borrower’s SE Micro-business owners struggle to save for retirement. heir—never has to pay back more than the home’s value. Check with yourfinancial adviser to see if this option is right for you. 4, What Sources Of Retirement IncomeWill I Have? Chances are your retirement income will come from several different sources, including Social Security and savings in retirement plans. The classic investment is an insurance annuity. However, other retirement plans, such as an IRA, Simplified Employee Pension (SEP) and individual 401(k), have become more popular. 5. When CanI Retire? Americanstraditionally think 65 is the ageto retire. In fact, only Social Security contributors born before 1938 can draw full payments at age 65. Those born in 1960 or later must wait two full years, to age 67. Workers willing to delay drawing Social Security until age 70 can receive more. These tips were excerpted from a May/June 2007 Self-Employed magazinearticle by Jan Norman. For more tools and tips to help run a micro-business, www.NASE.Lorg. visit
