Those that are in charge of their own financial destiny, and who have not hitched their stars to an outside employer, can’t rely on anyone else to take care of their retirement security.
Greenville, SC (PRWEB) October 21, 2014
There’s not much out there about self-employed retirement planning such as how to design a Solo 401(k) plan, or whether they could be better off with something like a SEP, or Simplified Employee Pension plan.
For those that are in charge of their own financial destiny, and who have not hitched their stars to an outside employer, understanding self-employed retirement planning is critical. They can’t rely on anyone else to take care of their retirement security. Unfortunately, according to a recent industry survey, some 28 percent self-employed individuals aren’t saving for retirement at all.
Here are some principles to keep in mind.
Use tax leverage. Accounts grow faster if the tax man leaves them intact, as opposed to levying a current tax on every dividend, every dollar of interest received, and on ever dollar of profit from trading.
Protect assets from lawsuits. Trial lawyers go after businesses all the time, for both good reasons and on trumped-up pretenses. They also go after business owners, personally.
Leverage expertise. They are probably an expert in something they can leverage, even within their IRA or other retirement account.
Put lots away. As long as they have sufficient cash on hand to meet their immediate business needs, and accomplish their long term business strategy and lifestyle goals, the more money they can take out of their business and out of their personal name and move into protected retirement accounts, the better.
When it comes to self-employed retirement planning, there are several – the best one depends on each individual's circumstances, including the amount they can contribute and what percentage of their income is salary versus Schedule C or dividend income.
The Traditional IRA, the Roth IRA, the SEP, and the Solo 401k are a few of the more popular options.
To learn more, click here to read the entire blog.
About American IRA, LLC:
American IRA is committed to providing every client with gold-level service, regardless of account size. Experience their expertise through their certified IRA services professionals. Enjoy the value with one low annual fee of $285 with unlimited assets and unlimited account values. American IRA clients love the benefit of no charge for "All Cash" accounts. The performance of the American IRA staff is unmatched, with quick and efficient processing within 48 hours.
American IRA services thousands of clients and has over $300 million in assets under administration.
American IRA was built by investors for investors, and brings their successful investment experience to the table, providing excellent educational material showing the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
American IRA is conveniently located in Asheville, NC and Charlotte, NC, and serves clients nationwide.