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Question: I work out of my home and need some advice. It seems that lately when I have a project due, I find myself pacing throughout the house. What is wrong with me? Do I need professional help?

Answer: Don’t call your psychiatrist yet! Quite frankly, you’re not alone.

Though people who work at home are blessed with not having to fight traffic or deal with office politics, it does not mean that your job is stress-free. Isolation can cause just as much stress as working in a crowded office.

In an office environment, on the days you could not gather your thoughts to work on the project, you would probably take a coffee break or visit with your peers to give you a new perspective or some advice. When you’re working at home alone, that type of interaction just doesn’t exist.

So you find yourself checking on the dog or washing those breakfast dishes. But that’s OK. Sometimes doing some mindless task will give you just enough of the break you need. If you absolutely need some type of feedback from another professional, pick up the phone and dial someone who knows and understands you who might be able to make you laugh and feel better. But remember, tell them you’ve only got time for a 15-minute break. Soon you’ll feel more focused, calmer and able to finish that task, which is less daunting.

Question: A friend of mine just told me about a new tax law regarding home offices. Please tell me it isn’t true that those of us working out of our homes must pay even more taxes.

Answer: I would love to be able to tell you differently, but the Los Angeles City Council last March extended its business tax and licensing laws to people working at home.

Before this, city zoning regulations prevented residents from operating businesses at home. The Home Occupation Ordinance was a way to add revenues to barren city coffers. This ordinance requires writers, actors and others working at home to register with the city and pay business taxes. But with so many creative small-business owners in Los Angeles, there are some who say this law might be unconstitutional.

The Writers Guild of America filed a suit in federal court in September alleging the ordinance is a violation of the First Amendment and privacy rights. That suit was later dismissed, but the Guild is considering filing another one in state courts pending a decision by the City Council on an amendment introduced by Councilman Richard Alatorre that would exempt writers, as well as those whose work has no impact on their neighborhoods, from the ordinance.

Before you panic, contact your tax accountant regarding any new tax laws and how they might affect you.

Question: I’m in my mid-30s and have a stable but time-consuming job and pretty good pension savings. I’ve always had an interest in rare books and would like some day to start a business on a small scale as a rare-book dealer. I’m afraid, however, that this enterprise won’t be as profitable as my present career. I’ve met people who have retired early to start a second career and then eventually retired completely at 65. But I am afraid that I would be setting myself up for an insecure old age. Is this just a pipe dream?

Answer: It’s not a pipe dream. In fact, if you handle your financial preparation correctly, you could manage to achieve personal fulfillment and a secure retirement.

Let’s say you want to leave your first job at 55, work 10 years at something you love, and then retire at 65. First, you determine how much retirement money you must accumulate by the time you leave your first job. That money remains untouched and left to grow until your retirement.

Calculate how much company pension and profit-sharing money you’ll need and how much of your own pension savings you will have accumulated at 55. Also, determine at what age Social Security will start and what the amount will be. If the sum you could draw on starting at 65 is not enough for you to live on, chances are you will have to start supplementing by making the maximum pension contributions and increasing your savings.

Also educate yourself about the wisest investments to help your money grow until you are 65. If this is not an area you excel in, consider using the services of a financial advisor. (You’re in your mid-30s, so you may want to split your investments 60/35/5 60 percent in stocks, 35 percent in bonds, and 5 percent in cash-equivalent investments, like money markets or Treasury bills.)

You must also consider how much money you will need to start the business and how much net income you’ll get without disturbing your retirement funds. While you do not expect a large income, you’ll want to be sufficiently qualified in your field to attract a clientele and to make good business decisions. This will mean developing relationships with others in your field.

Also consider whether you will need any advanced education, and try to get it before you leave your job. (You might even want to get a job with a rare-book dealer on weekends just to get a feel for the business and make contacts!) Start your business on a small scale a few years before you reach 55, so you can experience the start-up surprises and costs while you still have the cushion of an income.

While there are no guarantees, there is a good chance that your dream will come true without jeopardizing your old age.

Lorraine Spurge is a personal finance advisor, author and business news commentator. She can be reached at (818) 705-3740 or by e-mail at [email protected].