Being self-employed, you are not automatically enrolled into an employer-sponsored retirement plan. Or perhaps, you are already contributing to a 401k, but all the income from your self-employed activity is left unused. This year, why not make a difference with your retirement planning process by setting up a Solo 401k account? This innovative retirement solution is a proof that retirement planning for the self-employed can be just as efficient as with a regular 401k.
Maximizing contribution with a Solo 401k account
With a regular 401k, you can count on the employer’s matching contribution to maximize your funds. With a Solo 401k account, you can decide this employer’s match because you are also the owner or employer of the business.
Thanks to that, each plan participant of a Solo 401k can contribute up to $53,000 in 2015. Those who are over 50 years old can contribute an additional $6,000 as a catch-up allowance.
Be in control of your retirement future
While many traditional retirement plans leave everything in the hands of a custodian or a fund manager, a Solo 401k account allows plan holders to be in control. There is no custodian required, and therefore, no approval process before any investment.
If you have investment experience or knowledge, put the knowledge to good use and grow a healthy retirement fund in 2015.
Invest in almost any asset
The Solo 401k plan not only allows you to decide how to invest, but also lets you choose what to invest in with your funds. The options are no longer restricted to stocks, bonds and mutual funds as many plan custodians try to tell you.
The Solo 401k plan allows for real estate investments, including properties, mortgage notes, trust deeds and more. Plan holders can choose to add precious metals, commodities, or even a private business, among other assets.
Invest in real estate with leverage
If you choose to invest in real estate this year with your Solo 401k plan, don’t forget that the plan allows the use of non-recourse financing to purchase a property. If used wisely, leverage can be a powerful investment tools, allowing investors to invest more efficiently or purchase properties they may not be able to afford otherwise.
We all have our goals for the New Year, so why not make 2015 a financially successful year? Retirement planning cannot be delayed, especially when you are self-employed. The uncertainty of future income makes it even more crucial to save up so that you will stay financially secured. Put a Solo 401k account on your new year’s resolutions, and start planning for your retirement today!
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