SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER

Pressed for cash, many people will take money out of their individual
retirement account (IRA) as a means to get quick access to capital.
They do this even though they have to pay taxes and generally
if they are younger than 59 ½, also pay a 10% penalty on the money
they withdraw.

Only as a last resort should one touch their retirement savings
for anything other than retirement expenses. But, in those cases
when you need to tap into your retirement savings, a way to get money
out of your retirement account without paying the penalty and deferring
the tax was just made available beginning in 2002, as a result
of a tax law change.

Under the new law, those with a small business and no employees
or only a spouse as an employee can establish Solo-Owner 401(k) plans
and take a loan from those plans. The loan from the Solo-Owner 401(k)
is not treated as a withdrawal. As such it is not subject to tax
and the 10% penalty for early withdrawal as long as you repay the loan
on time.

You can roll over or transfer the funds you have in your IRAs, 401(k),
403(b), or other qualified retirement funds into your Solo-Owner 401(k)
and then borrow from the balance in your Solo-Owner 401(k) plan.

Employees of large corporations for the most part always had
the ability to borrow from their 401(k). Now small business owners,
such as freelancers, consultants, and entrepreneurs, who have left
the corporate world also have that choice. They can borrow up to the
lesser of $50,000 or 50% of the balance in their 401(k).
A Solo-Owner 401(k) plan gives small business owners the opportunity
to defer up to $40,000 per year in a tax deferred retirement plan
and the flexibility, should they ever need it, to borrow from their
retirement funds.

The Solo-Owner 401(k) plan goes under different names depending on
the provider of the plan. Make sure you are aware in advance of
the fees that may be associated with rolling over or transferring
your money into or out of your Solo-Owner 401(k) plan.
For more information on the Solo-Owner 401(k) plan and other ways
to get money out of your retirement plan while minimizing the taxes
and penalties visit www.InvestSafe.com

Everybody wants to learn how to make money on the Internet. What about saving money for retirement and your future? If you don't do it, who will? Alan Greenspan, Chairman of the Federal Reserve Bank, recently confronted the U.S. Congress about the cost of future retirement benefits.

You may recall the 1999 Tom Hanks film, "The Green Mile". This film adaptation of Stephen King's novel provides just a couple of comparisons to current economics and Alan Greenspan. Greenspan's comments before Congress sometimes equal the length of "The Green Mile" (3 hours), but his testimony won't evoke tears unless you're a baby boomer, soon to be a Social Security beneficiary.

In "The Green Mile", Hanks plays a prison guard charged with the care of death row inmates. He treats each "death row" convict with care and Southern civility. In order to avoid stretching parallels to the movie, I will observe only that Mr. Greenspan, born in New York City (March 6, 1926; send him a card) is civil when Congressional Committees question his opinions.

"The Green Mile" ends at the hot seat for convicts. Alan Greenspan's February 25, 2004 testimony leads to an economic, political, and social hot seat: Social Security benefits. I suggest you read the full text of his testimony found at: http://www.federalreserve.gov/boarddocs estimony/2004/20040225/

Now to "The Green Span" hot seat comments about Social Security:

**We sing Happy 62nd Birthday to the first baby boomers in 2008
**50% of them may retire at age 62
**Everyone's gong to live longer
**Social Security costs will escalate
**Funds to pay may not meet the demand

What does this mean to you? Well, it's motivation to make that site sell while saving toward retirement. Further, every site generating cash flow, may do so for years and years, if managed wisely. This means qualifying for retirement does not force you to retire. Cash flows can continue for your life time.

However, saving for retirement still makes sense. It saves you taxes now and later. Furthermore, an aging population living longer means Social Security benefits may be reduced when you become eligible. So, start saving now by starting any one of the following methods.

**Individual Retirement Account: You may contribute up to $3,000 in 2004, $4,000 in 2005-2007, and $5,000 in 2008 and beyond. When you reach age 50, "catch-up" provisions allow you to contribute an additional $500 in 2004-2005 and $1000 in 2006 and beyond. This means your IRA contribution in 2006 may be up to $6,000.
**If your Internet web site incorporated, you may have an employer sponsored plan. The Savings Incentive Match Plan for Employees (SIMPLE plan) "SIMPLE plan contribution for 2004 amounts to $9,000. This increases incrementally to an "adjusted" $10,000 in 2006.
**A SAR/SEP and 401(k) let you contribute up to $13,000 for 2004 (the maximum in 2006 is up to $15,000) Employer sponsored plans also allow "catch up" provisions for workers over age 50. For example, an employee over age 50 may contribute a "catch up" contribution of $3,000 for 2004 (the maximum "catch up" contribution is $5,000 in 2006).

IRA accounts and employer accounts may be opened at banks and brokerage firms. Check with your tax adviser and financial consultant first.

Social Security provides for basic needs during retirement. Make sure your resources permit the lifestyle you want by saving for your retirement now.

Ray Randall is a registered investment advisor with Ethos Advisory Services, Essex, Massachusetts http://www.ethosadvisory.com. He writes a weekly newsletter for Ethos Advisory Services, and is the webmaster for Echievements . You may write to him or call (877-895-3756).