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Question:


I want to start saving for retirement. I am self-employed. What are my options?
-mwolff369


Answer:


Whether you incorporate your business or are a sole proprietor, you can set up a 401(k) plan just as Fortune 500 companies do. That allows you to benefit from the same tax breaks on contributions and investment income and capital gains. Financial institutions, especially discount brokerages, have off-the-shelf plans that can be set up in minutes, although the procedure can become complicated if you have employees other than your spouse. Once you cease being a one-man or -woman band, it’s wise to seek help from a financial advisor who specializes in issues pertinent to small businesses.

Depending on how much money you earn and how your business is structured, you may be able to contribute to an individual retirement account, as well, allowing you to put aside even more for retirement.
-Conrad de Aenlle



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