Category Archives: Retirement Investment
Being our own boss, setting your own schedule and calling all the shots are benefits of owning your own business and being self-employed. There are many challenges, however, associated with self-employment. The small list indicates that you are in charge of every aspect of your business; you have to find new customers, take care of marketing
Investing for retirement is important so that you have enough money available once you can no longer work later in your life. Social security alone will not be sufficient and you want to ensure you have the money available to spend your golden years the way you dream, not scraping by and barely surviving.
The rules with a Keogh retirement plan may offer more advantages when compared with other types of retirement plans. Early retirement planning should include evaluating the different types of retirement accounts available, and then deciding which plan type works best with your circumstances and situation. One benefit is that these plans can be very effective tax shelters
What is a supplemental executive retirement plan, and what are the tax consequences for this type of plan? This is one of the available account types that can be used for retirement planning purposes, and there are both benefits and disadvantages with these plans. The goal is to provide additional compensation for valued employees, to retain them and their talents.
1. Traditional IRA- One of the top retirement plans for small business owners is a traditional IRA. This type of plan can be arranged for each employee, and there are a number of features that can be included. This is also one of the best retirement plans for self employed people. If your business has many employees this can require significant time and effort though
1. Simplified Employee Pensions- These retirement plans for self employed individuals are simple to utilize, and are also referred to as a SEP plan or SEP IRA. This plan can also be ideal with retirement plans for small business owners and employees as well. It is similar to a traditional IRA plan, but the contribution limits in place are higher for the SEP plan.
1. Start Young- One of the secrets of early retirement planning is compounded interest, and to gain this advantage you must start saving for your retirement at a very young age if possible.
2. Be Realistic- Whether you decide on a Keogh retirement plan or another IRA type, make sure you are realistic about the future income and expenses.
Retirement cash flow is one of the three critical components of any retirement plan, and there are some tips which can help with this. A retirement savings calculator can help you determine the amount that you will need each year in retirement, so that you can start planning to ensure that there is adequate cash flow during your golden years. Each retirement is different, with different goals and varying retirement cash flow requirements, and what is ideal for one individual may not be the best possible choice for someone else because of this. Advance planning can help you ensure that your retirement is comfortable, and that it meets your expectations.
Self employed retirement plans are an important consideration for many, and understanding the available options can be essential. There are four main types of retirement plans for the self employed, and these are a SEP IRA account, a SIMPLE plan, a solo 401k, and a Keogh. Each of these has specific advantages and possible drawbacks or restrictions, and while one choice may be ideal for some no one plan will be perfect for every self employed individual. A SEP IRA is a simplified employee pension plan, and this is basically a traditional IRA but one that allows for contributions which are much higher. This is one of the most popular self employed retirement plans for many individuals, and each plan participant covered will have a separate IRA account.