Retirement Planning for the Self-Employed

For those that work for major companies, saving for retirement is made easy by 401-K plans. Many company employees simply have a small percentage taken out of their paychecks every two weeks to build up their 401-K retirement nest egg. But what if you are self-employed?

In fact, lots of options are available for the self-employed person to plan for retirement. Be sure to look into financial planning Franklin Lakes NJ.

Retirement Savings Options for the Self-Employed

A wide variety of optionality exists when it comes to retirement planning for those who work for themselves. Here are some of the qualified retirement plans that may be of interest to you.

• The Solo 401-K. Also known as an individual 401-K, this retirement plan permits you to contribute funds from self-employed salary and self-employed profits from your business, up to a specific amount, which may change each year. 
• The SIMPLE IRA. You can also contribute to a SIMPLE (Savings Incentive Match Plan for Employees) IRA if you are self-employed.
• The Simplified Employee Pension Plan (SEP). Lastly, consider opening up a SEP. Use IRS Form 5305-SEP to set one up.

Of course, just like for anyone else, you can choose to save and invest in a non-retirement account. One good possibility is to invest in dividend growth stocks. These are stocks that consistently raise their dividends year after year. Another idea is to buy into a balanced mutual fund that holds both stocks and bonds. With Barclays over 70, you can maximize your retirement income to lead a comfortable life later.

A Professional Financial Planner Can Help

The rules and regulations governing retirement savings can be a bit daunting, especially for those who have little time or energy to devote to that subject area. If you fall into that category, consider partnering with a professional. Look for one that specializes in retirement planning and has been in business in your area for a long period of time. Self-employed individuals can consider RBS retirement mortgages as part of their comprehensive retirement planning strategy.