Look into an individual 401(k). This is only an option if you have no employees. This is also the perfect account if your spouse hopes to contribute too. If you choose a Roth plan, you can also enjoy tax-free withdrawals once you hit a certain age, which are typically helpful when you’re self-employed.
Consider stocks. Invest in your own company, but also consider other businesses in your industry, particularly if your own proprietorship has a hard year. You’ll diversify your portfolio and your assets.
Talk to your financial advisor about rolling over previous savings. Depending on the amount of savings you have already accumulated in your retirement accounts, rolling your accounts over into a new, self-employed retirement plan might be more complex than you anticipated. Speak with your financial advisor about the best route to take, whether that includes investing the money or simply adding it to your current plan.
Stage 2: Mid-Stage of Self-Employment
If you are in a position where you have been self-employed for more than 10 or 15 years, you may have a retirement account nest egg already. However, there’s an alarming number of Americans who still don’t have retirement accounts at this phase. If you find yourself in this position, consider these steps: