For many people, being their own boss means that they have truly arrived. There are many benefits that come from being self employed including setting your own schedule, doing what you love, and having complete control over your financial situation. However, when it comes to saving for retirement, it can seem daunting. There is a lot that is done by an HR department when you are employed by someone else. When you’re carrying that load on your own, it can leave some business owners wondering how they can plan appropriately on their own. Mark Dicus & Company is here to talk about what saving for your retirement as someone that is self employed looks like.
Plan for Retirement when Self-Employed
When you own and run your own business, it can be easy to get caught up in the financial success of your business and putting everything you can back into the business to continue to grow it and make more money. However, it is vital that you think ahead a little bit for yourself as well. It is always better to be safe than sorry when it comes to saving for retirement. You want to have a plan in place to make sure you’re covered.
Save 40% Out of Your Paycheck Income
There are things that you have to plan for as a business owner. When you are freelancing or working as a contractor, it is wise to hold 30% of your paycheck to make sure you can pay your taxes throughout the year. If you are thinking about putting some away from retirement, consider holding 40% out of your paycheck. You more than likely won’t notice 10% of you income and can have the peace of mind you need when it comes to saving for retirement.
Fund Your Own Retirement Plan
When you work for someone else, you will usually be offered a 401K or 403K to save for retirement. This uses dollars that aren’t taxed and some employers will match your contribution up to a certain dollar amount. When you’re working for yourself, you no longer have an employer that is matching any of your money, and you don’t have that account set up either. This means that you have to take matters into your own hands. There are several different options that you can look into as you figure out what is the best route for your lifestyle and needs. It is always helpful to sit down with a financial planner to help you choose the best option. Here are some of the different types of accounts:
– SEP IRA
– SIMPLE IRA
– Solo 401K or One-Participant 401K
– IRA & Roth IRA
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
It is always a good idea to call on the professionals at Mark Dicus & Company to help you get things sorted out so that you can ride off into the sunset one day with an excellent retirement account to fund your adventures. Let us help you make plans for the future. Call us today!