Maximize Your Retirement Planning Based On Your Stage Of Self-Employment.
No matter what stage of self-employment you may be in, thinking about how to make your investments last in retirement should be a top priority. If you are ahead of the game and already have a retirement fund in place, now’s the time to consider how you can maximize it. A key way to optimize the return on your investments is by using an income investing approach. By collecting cash flow from dividends from stocks, interest from various types of bonds, and distributions that come from a variety of investments, you can create a solid portfolio.
Each stage of self-employment comes with a different list of “to-do’s” when it comes to retirement planning. In order to keep yourself on track, try to follow these tips.
Stage 1: Early Stage of Self-Employment
The early stage of self-employment may be the most overwhelming, especially if you’ve left a traditional career in the workforce to start your own business or become self-employed. Right now, retirement is probably the last thing on your priority list, but there’s no better time to start considering your options.
Don’t become dissuaded by contribution limits. Even if you can’t put in the cap amount on a retirement account, that doesn’t mean you should forego saving altogether. Instead, focus on saving what you can, when you can, especially in the early stages.
Have money automatically withdrawn into your retirement account. Out of sight, out of mind, and then you don’t have to worry about it.