If you are like us, you are probably a small business (or self-employed). And like many small businesses that do not know where their next dollar will come from, most of us ignore retirement planning for ourselves, but even worse, for the employees. Thus, a big disincentive for working in a small business is the lack of good retirement programs. (Related article: Retirement planning if you work for a large firm)
Another important reason why you should be thinking about retirement planning is that if you don't save and plan for retirement now, you will literally be working forever. And if you work like us (about 60-70 hours a week), you don't want to do that.
Retirement planning options for small businesses and self employed
Another important reason why you should be thinking about retirement planning is that if you don't save and plan for retirement now, you will literally be working forever. And if you work like us (about 60-70 hours a week), you don't want to do that.
Retirement planning options for small businesses and self employed
- Start your own 401(k) program. It is not as difficult/expensive to set up as you think. In fact many financial institutions, particularly Fidelity, Vanguard, Schwab, etc. have schemes for small businesses and self-employed individuals.
- If you are self-employed, there are several other retirement plans, e.g., SEP, Keogh, Solo 401(k), IRA, etc. So do your research to see which one works for your individual tax situation and pick accordingly.