07-13-2017 Columns

Are you ready to be an entrepreneur?

July is Independent Retailer Month. As you know, local stores bring vitality, creativity and economic growth to their communities, so it’s worth celebrating those “mom and pop” shops. But they aren’t the only entrepreneurs in the country – about 10 percent of workers in the U.S. are self-employed, according to the U.S. Bureau of Labor Statistics. If you’re thinking of joining these ranks, you may want to prepare yourself financially. For one thing, you may need to pay more in taxes, depending on your income. Self-employed individuals typically have to pay twice the amount in Social Security and Medicare taxes because they have to cover the portion that employers normally pay.

Also, unless you’re fortunate enough to have a spouse who can put you on their employer-based health insurance, you’ll need to find your own, at least until you’re eligible for Medicare. Furthermore, you will need to take charge of your own retirement savings. Fortunately, several retirement plans are available to the self-employed. These plans typically offer tax-deferred growth potential and tax-deductible contributions. Here are a few options to consider:

Owner-only 401(k) — This plan, which is also known as an individual 401(k), is available to self-employed individuals and business owners with no full-time employees other than themselves or a spouse. For 2017, you can put in up to 25 percent of your annual income as an “employer” contribution, and you can defer up to $18,000 (or $24,000 if you’re 50 or older). The sum of your employer contribution and your salary deferrals cannot exceed $54,000, or $60,000 if you’re 50 or older.

SEP IRA — If you have just a few employees or are self-employed with no employees, you may want to consider a SEP IRA. You’ll fund the plan with tax-deductible contributions, and you must cover all eligible employees. As an employer, you can contribute the lesser of 25% of your compensation (if you’re also an employee of your own business) or $54,000.

Solo defined benefit plan — Pension plans, also known as defined benefit plans, are still around — and you can set one up for yourself if you’re self-employed or own your own business. This plan has high contribution limits, which are determined by an actuarial calculation, and, as is the case with other retirement plans, your contributions are typically tax-deductible.

SIMPLE IRA — A SIMPLE IRA, as its name suggests, is easy to set up and maintain, and it can be a good plan if your business has fewer than 10 employees.

Although planning for your retirement is important, you also need to prepare for unanticipated short-term expenses, such as a major car repair or a new furnace. While everyone should be ready to meet these needs, it’s especially important if you’re self-employed and have a variable income. So, work to build an emergency fund containing three to six months’ worth of living expenses, with the money kept in a liquid, low-risk account. You may find self-employment to be quite rewarding — but you’ll likely enjoy it even more if you make the right financial moves.

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Beach and water safety

As summer is in full swing, families will be enjoying outdoor recreation activities, which often include swimming in pools, inland lakes, and Lake Michigan.  While swimming is a fun activity for all ages (and good exercise!), it is important to know about water safety before getting wet. BCHD staff inspects beaches and samples bathing water each week from Memorial Day to Labor Day at several public beaches in Berrien County to make sure that the water is safe to enjoy. Residents and visitors can find the publically available beach water results at www.bchdmi.org.

Thousands of people in the United States die each year from drowning.  In fact, it is one of the leading causes of accidental death for children under five. These tragedies can be prevented by using safe practices around the water.

General water safety tips:

Set depth restrictions for all family members based on swimming abilities. Inexperienced swimmers should stay in shallower water.

Never dive headfirst unless an area is clearly marked as safe for diving, and there are no obstructions.

Always wear a life jacket when on any boat.

Children should wear coast-guard approved life jackets called Personal Floatation Devices when around deep water.  “Swim wings,” “water noodles” and other inflatable toys are NOT to be used as life-saving floatation devices.

Use the “buddy system.”  Never swim alone or allow your child to.

Don’t drink alcohol while swimming or boating.  It will slow your reaction time and diminish your swimming ability.

Pay attention to local weather forecasts, and leave the water at the first sign of bad weather.

For more information call the Health Department at (269) 926-7121 or visit us on Facebook at www.facebook.com/bchdmi.

Aquatic Invasive Species Awareness Week

Last week marked Aquatic Invasive Species Awareness Week in Michigan, and it comes at an important time in the fight against serious invasive species threats to our beautiful Great Lakes. Recently, a live Asian carp was caught only 9 miles from Lake Michigan. Asian carp are highly invasive. Once they enter a water way, they are extremely detrimental to other fish and can even injure boaters.

Everyday citizens who use our waterways are a critical component in the fight to stop or contain the spread of invasive plants and animals. Did you know that using boating equipment in multiple bodies of water without properly cleaning it easily spreads many invasive species? That’s why Michigan law requires that aquatic plants are removed from boats and trailers before placing them in the water. It’s also against the law to release live bait, or move fish between different bodies of water. Washing boats and trailers before leaving the boat ramp area and ensuring that live wells and bilges are cleaned are also important steps you can take to help stop the spread of invasive species.

Invasive species like the Asian carp can have a significant impact on many industries in Michigan. Michigan’s commercial fishing industry generates more than $10 million each year, with anglers spending $2 billion more on fishing related expenses like travel and equipment. Invasive species also negatively impact power generation, municipal drinking water systems, and manufacturing. A study completed in 2009 showed that more than 1.5 million jobs were directly connected to the Great Lakes, generating $62 billion in wages. Further studies indicate that past invasions of sea lampreys, zebra mussels, and other aquatic invasive species likely cost the Great Lakes region more than $100 million each year. This important issue deserves everyone’s attention.

If you have any questions about this, or any other state government issue please call me toll-free at 800-572-6212.

Proud to honor good Samaritans for aiding state trooper

We are fortunate to have selfless citizens here in Southwest Michigan who are willing to put their own safety at risk to help others.

Sen. Tonya Schuitmaker and I recently paid tribute to two good Samaritans who stepped forward to help a stranger under attack earlier this year.

Without regard for their own safety, Jerry Burnham of Berrien Springs and Keith Pepple of Plainwell came to the aid of Michigan State Police Trooper Garry Guild on February 20, 2017. As a result of their bravery, the attackers were apprehended and, more importantly, no one was injured.

Trooper Guild’s pursuit of a fleeing motorcyclist resulted in two men attacking the officer on the side of a road. Upon witnessing the altercation, Burnham and Pepple stopped their vehicles and came to the aid of Trooper Guild. They stopped one assailant from choking the trooper and held back the other until the trooper could gain control of the suspects and place them under arrest. In May, the motorcyclist was found guilty on six counts, including assault with intent to do great bodily harm and was sentenced to 14 years in prison.

Our law enforcement officials put their lives on the line every day to protect our families and communities. It was an honor to pay tribute to these gentlemen who reciprocated that generosity.

We presented Burnham and Pepple with special tributes recognizing their courage in risking their lives to aid a state trooper being attacked on the side of a highway.

We will be forever grateful for the actions of Burnham and Pepple and for all the good Samaritans who step forward each day to make a difference in our communities.

As always, I look forward to hearing your comments and feedback on the important issues facing Michigan. You can contact me at 517-373-6960.

Republicans and Democrats unite on landmark veterans bill

You might not have seen it on the nightly news but recently, Republicans and Democrats came together to take real action to help our veterans.

Most agree that our veterans here in Michigan and across the country deserve the highest quality medical care. The Veterans Affairs Accountability and Whistleblower Protection Act of 2017 is a direct response to the scandals at the U.S. Department of Veterans Affairs (VA) during the past three years. This bipartisan legislation was passed by the U.S. House of Representatives by an overwhelming vote of 368 to 55 and was signed into law by the president soon after. This important, common-sense bill puts in place landmark reforms at the VA that will provide better service to our veterans.

For too long the VA has been mired in missteps, inefficiencies, scandals, and sometimes downright corruption. We’ve all heard the stories about VA employees who fail in their most basic duties to serve our veterans. In the spring of 2014, we learned that dozens of veterans had died while languishing on secret wait lists at the Phoenix, Arizona VA hospital. As it later came out, VA wait lists had been manipulated throughout the country. Since then, the agency has careened from scandal to scandal, from the theft of opioids, to having calls at the VA suicide hotline go unanswered.

The Veterans Affairs Accountability and Whistleblower Protection Act of 2017 will keep VA employees accountable, remove unnecessary government red tape that makes it nearly impossible to fire a negligent employee of the VA, and add much needed protections for VA whistleblowers. At its core, our bipartisan legislation will lead to better care for our veterans and their families. This legislation demonstrates that even now, in these highly divided times we can find common ground on important issues.

To learn more about this and other important legislative issues, please visit my website: upton.house.gov or call my offices in Kalamazoo (269-385-0039), St. Joseph/Benton Harbor (269-982-1986), or Washington, D.C. (202-225-3761).