What Business Owners Need to Know: Taxes Before Retirement


Yes, running a business can feel like an all-consuming process. From tracking inventory to training employees and working with customers, it’s hard to find time for much else. But you can’t lose sight of retirement planning. If you don’t plan strategically, you could pay extra them that hurt your bottom line. Don’t cut into your savings because of poor planning. Stay with us to learn what business owners need to know about taxes before retirement. 

Watch for Social Security Taxes

Unfortunately, Social Security benefits aren’t always free from extra baggage. When your total income hits certain thresholds, you may need to pay on your benefits. 

Aside from what you earn from your business, you may have investments through a brokerage account or income from properties. If you’re balancing a portfolio of income streams from multiple sources, that just increases the likelihood of needing to pay taxes.

While you may owe federal taxes on Social Security benefits, not all states will require you to pay. If you live in San Diego, for instance, make sure you understand the taxation of Social Security benefits in California. Fortunately, you won’t need to pay anything for Social Security in The Golden State, but other states will be different.

It pays to be wise with how you manage your income streams. Look for tax-exempt investment options or look into making withdrawals from a Roth IRA. Simple financial moves can translate to big tax savings. 

Be Prepared for Capital Gains Taxes

Have you invested money in stocks, bonds, mutual funds, or real estate holdings? You may face capital gains if you sell them, especially if you’ve made a lot of money. How long you hold an asset matters, as well. 

You may be pressed for time when you’re running a business. But take time to look over your investment portfolio as you’re approaching retirement. 

You should be careful with timing and hold onto assets for at least a year to reduce your tax burden. Choose tax-advantaged accounts, too, to avoid incurring a tax on a sale. 

Count on Taxes for Retirement Account Withdrawals

You won’t need to pay yearly on your IRA or retirement accounts when you’re adding money to them. But as soon as you hit retirement and start withdrawing money, you need to plan on paying taxes.

If you take out a lot of money, you may find yourself in a higher tax bracket, too. You’ll end up paying more in taxes, so it’s smart to be careful with your withdrawal plans. Aim to take out smaller amounts of money that won’t add up to a higher bill. 

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Plan Before Selling Your Business 

When you’ve spent years growing your business, selling it to someone else can seem like the perfect way to start retirement. You’ll receive a substantial amount of money from your asset, but you may also need to pay a lot. 

How much you’re taxed will hinge on whether you’re pursuing an asset or stock sale, and how long you’ve held the asset. Sometimes, opting for an installment sale can lower your tax burden since you won’t receive one large amount of money. Consult with a tax expert to craft a smart financial strategy. 

Preparing for Retirement

Don’t let taxes derail what should be an enjoyable new chapter of your life. Know how retirement withdrawals and Social Security benefits will impact your tax burden. And watch for capital gains from selling your business. 

With a savvy approach and some input from a tax expert, you can take action to shape a bright financial future in your golden years.

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Credit: dragana991 / Getty Images
  • Saunas and steam rooms use heat to improve circulation, support muscle recovery, and reduce stress.
  • Regular heat exposure may benefit heart health, mood, and inflammation, though more research is needed.
  • Different types of saunas and steam rooms offer similar benefits, so choosing one depends on personal preference and goals.

People have been using the heat therapy from saunas and steam rooms for centuries to improve well-being and promote relaxation. Not only do these tools support muscle recovery after an intense workout, but they also boost circulation and reduce stress.

What Happens to Your Body in a Sauna?

Regular sauna use can have a positive impact on your body. Short bursts of intense heat raise your skin and body temperature, which researchers have found triggers your brain to start regulating your temperature. This activates systems in your body that control your stress levels and your hormones. You may notice changes like an increased heart rate, improved blood flow to your skin, and sweating.

Sauna use causes blood vessels to widen and may, over time, support reduced inflammation and cellular stress responses—but it’s not a direct or immediate cure-all for cell damage or inflammation.

Some researchers believe that the stress from the high heat may also mimic exercise and could be useful for people with limited mobility. However, more research is needed to fully understand the health benefits.

The Three Main Types of Saunas, Explained

There are several different types of saunas, such as dry saunas, infrared saunas, and steam rooms. Here's what you need to know about each.

Dry Sauna (Traditional Sauna)

A traditional or dry sauna offers high heat and low humidity and is usually found in local gyms and spas. Typically, the air is dry with 10% to 20% humidity, and the room is heated to a high temperature of at least 176 degrees Fahrenheit, sometimes higher.

Steam Sauna

A steam room uses water vapor to create a warm, moisture-filled room with dense, misty air. For comfort, most steam rooms operate at a lower temperature than saunas, typically around 110 to 120 degrees Fahrenheit, but can feel warmer due to the humidity. Like saunas, you can find them at gyms and spas.

Infrared Sauna

These saunas are dry saunas that emit infrared light waves to heat the body directly and do not use water or humidity. They can run a wide range of temperatures, from 113 to 165 degrees Fahrenheit. These types of saunas are popular in wellness spaces or among those who practice “biohacking.”

Potential Health Benefits and Risks of Saunas

Regular use of saunas and steam rooms can support heart health, improve circulation, and boost muscle recovery, as heat therapy increases blood flow and reduces tension.

There’s also some limited evidence that it can rid your body of impurities and heavy metals. However, more research is needed to fully understand the health benefits of heat therapy. Heat therapy is not widely studied, particularly regarding steam rooms.

The available research is promising. Here are some ways you might benefit from using a sauna or steam room.

  • Boosts heart health: A long-term, 15-year study found that visiting a sauna two to three times a week lowered the risk of dying from heart disease by 25% compared with once per week. Meanwhile, using the sauna four to seven times a week decreased this risk by 77%.
  • Enhances exercise benefits: One study found that combining regular sauna use with regular exercise can improve heart health by lowering cholesterol and blood pressure.
  • Promotes longevity: Your lifespan could potentially be longer when you use a sauna regularly, according to a 2021 review of several large studies. Researchers found that sauna use can slow aging, largely due to its cognitive, heart, and muscle benefits.
  • Improves mood: Regular sauna users may experience less depression and anxiety, and can be a useful tool for people in high-stress jobs.

Who Shouldn't Use Saunas?

While there are a number of benefits to utilizing a sauna or a steam room, these tools are not right for everyone.

For instance, people with certain heart conditions or those who are heat-sensitive may experience more adverse reactions than benefits from heat therapy.

Overuse can also cause dehydration, muscle cramps, and electrolyte loss. Consult with a healthcare provider before using a sauna or steam room, especially if you have any underlying health concerns.

Is One Type Actually Better for You?

There is little research identifying which type of heat therapy is best for overall health and well-being. Instead, both have benefits and can help you achieve your wellness goals. Most of the well-supported benefits come from heat exposure itself, rather than from the specific sauna type.

When deciding between the two, choose the sauna or steam room based on which you have the most access to—you will benefit from either. However, if you have access to both a sauna and a steam room, use the one you prefer and are more likely to stick with in order to see long-term benefits.

If your goal is health (especially heart health), consistency matters far more than the type of sauna you pick.

Which Sauna Should You Choose Based on Your Goals?

If you are fortunate enough to have regular access to both a sauna and a steam room, then you can make a choice between the two based on your goals:

  • For skin concerns: A steam room. If you suffer from dry skin or want to open your pores, the moist heat can hydrate your skin, encourage detoxification, and boost skin health.
  • For detoxification: A dry or infrared sauna. Because saunas cause you to sweat, your body may flush out toxins and impurities. There’s also some evidence that using a sauna can help rid your body of heavy metals.
  • For improved circulation and heart health: A dry or infrared sauna. These can help dilate your blood vessels and improve blood flow. These changes, when done consistently, could benefit heart health.
  • For improved breathing: A steam room. Moist heat is effective at opening your airways. Some people find that saunas are helpful for conditions like asthma.
  • For relaxation: Any. Not only does the atmosphere of saunas help reduce stress levels, but it also can improve mood and overall well-being.
  • For muscle recovery: Any. In a steam room, the moist heat will soothe sore muscles and joints and can be useful for conditions like arthritis or muscle stiffness. Meanwhile, dry or infrared saunas can promote relaxation, soothe muscle tension, and reduce pain and discomfort.



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