Hi everyone. Thanks for joining me on another weekly episode of the Money Girl

Podcast. I'm Laura Adams, the author of Money Girls Smart Moves to Grow Rich.

If you haven't gotten a copy of the paperback or e-book,

they're available wherever books are sold. You can also download two chapters for free

on my blog by the same name, Smart Moves to Grow Rich.com.

I received a question from a podcast listener named Matt W who asks,

in my free time I enjoy modifying vans and want to turn this hobby into a business.

However, most of my extra money is tied up in retirement accounts.

I contribute 7% to my 401k because my employer matches that full amount.

And I also max out a Roth IRA,

which is as much as I can afford to save.

I don't intend to withdraw money from these accounts

because I understand there are penalties.

But going forward, should I stop funding them and use

the money to start a business instead?

This is a great question.

I'll give Matt some ideas about how to start a business venture and cover important tax rules you need to know about turning your hobby into a business.

First of all, congratulations to Matt for doing such a great job saving for retirement.

He's contributing 7% and his employer is contributing another 7% in matching funds for a grand total of 14%.

That's a really sweet deal.

Additionally, he's maxing out a Roth IRA, which is another $5,000 for retirement.

We don't know the total percentage of income that Matt's setting aside, but I recommend that

...