For small business owners and self-employed entrepreneurs, there are five basic types of retirement plans to consider. As IRA-based plans, they are relatively easy to set up and administer, and they may be applied by the business owner and employees alike.

Traditional payroll deduction IRAs require that employers deduct part of employees’ income, depositing the funds into the IRA on their behalf. Employees make key decisions, such as contribution amount, and the employer acts as a facilitator. Such contributions are typically tax deductible, with a $1,000 contribution directly reducing one’s taxable income by the same amount for that tax year. The funds grow on a tax-deferred basis, which means that they are taxed at an ordinary income tax rate only after retirement, when distributed.

There are set limits on IRAs, with the cap for 2024 set at $7,000 for business owners and employees alike (those past age 50 have a catch-up contribution option which adds $1,000, for a total annual limit of $8,000). Traditional IRA contributions may not be fully deductible for single or married taxpayers with 401(k) or 403(b) company-sponsored plans in place. In such cases, eligibility is determined by modified adjusted gross income (MAGI).

For 2024, to be fully deductible, the MAGI needs to be under $77,000 among those filing singly or as head of household, and under $123,000 among those married and filing jointly. Eligibility phases out completely at $87,000 for individuals and at $240,000 for married couples.

Roth IRAs have the same contribution limits, but they differ in that contributions are not deductible for the year in which they are made. The advantage is that, ultimately, the distributions are made tax-free. Unlike traditional IRAs, Roth IRAs have no required minimum distributions or age limits after which contributions cannot be made. This means that a person of good health and stable finances, even in retirement, is not required to pull any money from the Roth account and can, indeed, contribute as long as they like. A related advantage is that Roth IRAs are designed to transfer to heirs on a tax-free basis.

Designed for self-employed individuals and business owners, solo 401(k)s operate much the same as standard, employer-offered 401(k) plans. As with traditional IRAs, contributions are made pretax, and distributions made past age 59 and a half are taxed. Potential contributions are capped at $69,000 for individuals (plus $7,500 catch-up contribution) and $22,500 for employees (plus $7,500 catch-up contribution). Employers may add a contribution of up to 25 percent of the compensation amount.

For single-member LLCs and sole proprietors, a special rule applies: 25 percent of the net self-employment income may be contributed, with the income limit set at $345,000. There are also solo Roth 401(k)s , which operate on the same principles as Roth IRAs.

Easier to set up and maintain than solo 401(k)s, SEP IRAs offer similarly high contribution limits and, as with their counterpart, do not need to be contributed to every year. They do have an employee element, according to which an equal percentage of salary needs to be contributed to all eligible employees. With the business owner considered an employee, this means that contributing 8 percent of one’s own compensation necessitates contributing the same amount to all eligible employees.

Finally, the SIMPLE IRA allows employees to directly contribute to their own account, with the employer required by law to make a matching contribution. There is a contribution limit of $16,000 and a catch-up amount of $3,500, and all contributions are tax deductible. Traditional SIMPLE IRAs are taxed upon distribution in retirement. In 2022, federal legislation passed that allows for Roth contributions to such plans starting in 2023.

Some investment portfolios benefit from diversification and balance when economic conditions turn unfavorable. The type of asset also comes into play. Equities return high yields but experience volatility, while bonds return lower yields but see more stability. Therefore, bonds can balance portfolios. When investing in bonds, there are a few things to consider.

Investors exploring bonds as an investment vehicle can consider the issuer’s credit standing. Governments and corporations issue municipal and corporate bonds with varying par values and coupon rates. Each issue will receive a rating by a credit rating agency.

Then, look at the maturity period, potential returns, and accompanying risks. Bonds may mature in a year or 30, especially in the case of United States Treasury Bonds. Treasury Bonds have low default rates and extended maturity dates. However, bonds with high returns have higher risks. Municipal bonds, corporate bonds, and government agency securities pose a reduced risk for investors.

Lastly, explore the prevailing interest rates and potential tax benefits. Novel bonds incur higher interest rates. The tax benefits vary, but federal and state taxation does not affect the income earned from certain bonds.

The term charity has several related definitions. First, it is an act of helpfulness or generosity toward those in need in society. Second, it can be an institution that gives relief to these same people. Third, it is a public act by various entities, including individuals and corporations, involving providing help to people who need it.

Community involvement, which includes volunteer work, is work done by individuals to help people in communities without expecting pay or other remuneration. For the most part, an individual does the work out of the desire to see other people prosper and be able to take care of themselves. There is no expectation, such as social recognition or other form of reward.

Importantly, the terms community involvement and community service differ. With community involvement, the individual volunteering expects no reward. In contrast, a person doing community service does so with a specific purpose related to the work they will be doing. For instance, one may do community service to gain knowledge in a specific field, while another may be looking to improve their resume by gaining work experience. In addition, there are those ordered to perform community service by the courts.

With these points in mind, it is important to understand how one benefits from charity and community involvement, despite individuals not expecting any benefits. Charity and community involvement benefit individuals and businesses in various ways.

For an individual charity creates social connections, evokes gratitude, and creates a ripple effect. Charity brings a person closer to those they are supporting and such recipients also draw closer to the giver, creating social bonds. Also, charity can evoke gratitude for both the giver and recipient. Moreover, when one gives it creates a ripple effect, prompting others to give as well for society’s greater good.

An individual also experiences health benefits through charity. Studies have found that giving to society positively impacts the brain. Due to gratitude and other feelings of well-being, a person can prevent or alleviate mental health conditions such as anxiety or depression. Other research concludes that by reducing stress, anxiety, depression, and hypertension, engaging in charity can help increase a person’s life expectancy.

For businesses and corporations, charity has tax benefits, provides publicity, and creates customer support. When a business gives to charity, it can claim tax deductions on charitable donations of up to 50 percent of its gross income.

Similar to charity, community involvement impacts individuals in positive ways. Studies claim that people who volunteer are physically and mentally healthy. They also tend to live long, since volunteering evokes gratification and feelings of well-being. Additionally, a person gets a sense of purpose knowing they have touched another person’s life.

Community engagement also extends a person’s network of friends and other like-minded people. This way, a person understands their community better and the circumstances of those living in it. Additionally, by engaging with other volunteers and community members, an individual gains people skills such as kindness, patience, and resilience. They also gain communication skills interacting with other volunteers and community members, helping them to understand the issues at hand.

For businesses, community involvement impacts overall success and customer perceptions. Research has found that thriving businesses often attribute their success in large part due to community involvement. Additionally, community involvement has led to what is known as corporate social responsibility (CSR). Today, CSR is not just a means to give back to society as a generous gesture, but rather a requirement for some businesses to remain competitive.

Other studies report that consumers expect businesses and corporations to support social and environmental causes. In addition, most customers are likely to buy goods and services from organizations that involve themselves in community work, since it shows that such businesses and corporations care for people and are not just focused on the bottom line.

The Certified Investment Management Analyst (CIMA) is a designation granted to individuals who have met the education, experience, and ethical requirements set forth by the Investment Wealth Institute (IWI). The CIMA certification is the top category of advanced training for customer-facing consultants. The program is developed to deepen the understanding of investment management and portfolio building, providing a comprehensive and cross-functional understanding of the industry.

The CIMA certification is designed for investment professionals, analysts, and financial consultants who work with high-net-worth individuals, families, and institutional investors. It is intended for professionals who are involved in the investment decision-making process, including portfolio managers, wealth advisors, and trust officers.

To be eligible for the CIMA certification, individuals must have a minimum of three years of experience in the investment industry, pass a rigorous exam, agree to abide by the Code of Professional Conduct, and pay an initial certification fee. The certification program takes between six to nine months to complete.

A CIMA certification demonstrates a high level of expertise and professionalism to clients. It increases an individual’s credibility in the industry. Clients who work with a CIMA-certified expert can be assured that they are working with an individual who has met the highest standards of training and experience in the industry. Additionally, the CIMA certification is widely acknowledged by employers in the investment industry. It can also open up opportunities for career growth and increased compensation.

Another advantage of CIMA membership is access to industry-leading education and professional development resources. IWI offers various webinars, conferences, and other events constructed to help CIMA-certified professionals stay up-to-date with the latest industry trends and best practices. Additionally, IWI provides access to a wide range of research and educational materials, including white papers, articles, and case studies.

CIMA members also have access to a network of other professionals in the industry. Through IWI, CIMA members can connect with other certified professionals worldwide, which can be a valuable resource for sharing ideas and best practices. The organization also offers a mentoring program that pairs experienced CIMA members with those new to the certification.

Since CIMA professionals have expertise in different areas, including finance, management, business strategy, and operations, they have a better chance to raise their rates. The certification also offers them higher chances of working within large firms. Additionally, the CIMA certification sets the professionals apart from others such as CPAs, due to the focus on investment consulting.

To excel in a career as a CIMA, it is crucial to develop a balance of both hard and soft skills. Essential qualities to focus on include accounting principles. This requires a thorough understanding of financial statements and familiarity with state and federal regulations that are essential in making sound decisions.

A CIMA should also have analytics skills to go through massive data from different sources, pinpointing trends and familiar data points. Financial market knowledge is another helpful skill as it helps understand the market and its operations. Finally, acquiring customer support skills such as excellent communication and public relations skills is crucial in offering a better customer experience.