Retirement Savings Tips for the Self Employed
Saving money can be difficult when you are self-employed, but saving for retirement is a must. You have several options to prepare for retirement. Whichever option you choose needs to be right for you. Just because you heard of something working for someone else does not mean it will have the same benefits for you. It is best to sit down with a specialist. I recommend Perry Jeffries III, The Entrepreneur’s C.F.O., you can schedule a free consultation with Perry Jeffries III by clicking here.
Perry has 34 combined years in the wealth, health and consulting industries, Series 7 (securities broker) and series 66 (investment advisor) licensed Life, health and annuity insurance licensed, Crpc – chartered retirement planning counselor, Cpfa – certified pension fiduciary advisor and managed over $70 million in client assets.
5 Ways to Save for Retirement
SEP IRA. Contributing to a SEP IRA will decrease your tax burden, and your money will grow tax-deferred until retirement.
Tax-deferred annuities. Tax-deferred annuities allow self-employed entrepreneurs to delay taxes on compound interest.
Solo 401(k). This plan can be a smart option for high earners, mostly because it offers some of the highest contribution limits.
Traditional or Roth IRA. While a traditional or Roth IRA shouldn’t be your main retirement account due to the small contribution limits, these are great supplementary options that can allow you to save more than you would otherwise.
SIMPLE IRA. The savings incentive match plan for employees is often used by small business owners with employees, but it also works for solo entrepreneurs and the self-employed. The money you contribute is tax-deductible and grows tax-free until you start taking distributions.