Set up any of the best retirement plans for self employed individuals as early as possible and enjoy greater earnings in your golden years
There are around 10 million self employed people in the US with nearly 30% of them are soon to be retiring few years from now. Since self employed people don’t have access to common types of retirement plans available only for employed individuals, there are still highly recommended retirement plans for self employed individuals that are IRS approved and offered by different financial service providers. It is important that self employed people, whether running a small or huge enterprise, should take advantage of the best retirement plans for self employed individuals.
It is important to start setting up retirement accounts for self employed as early as possible. The gains from the investments you make increases significantly as time pass by, even higher when the economy gets stronger. The earlier you start, the longer your investments could run around and generate earnings on your retirement account. Your initial capital of $2k every year when you start at the age of 25 can grow up to $450K when you reach 65 years old which is the perfect time to retire.
Determine what type of contribution you would like to make. If you want to tax diversify your retirement savings, the Solo 401k is a great plan for you. This type of retirement plans for self employed individuals has Roth sub account that allows you to designate after tax contributions while making regular contributions on its default account.
Consider the inflation. Remember, the current figures that could financially support two people today may not be the same figures 10 years from now. If you have a particular amount in mind right now that you believe can support you during retirement, then it would be better to save beyond that amount because we’ll never know how high consumer price, medical expenses, and other living expenses would be several years from now.
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