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Self-Employed - Best Retirement Option?

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rlashure
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Self-Employed - Best Retirement Option?  Reply with quote  

My husband is 28 years old, self-employed, and without a retirement fund. I have one through my job, and would like him to start one ASAP. His business is just under two years old, and growing rapidly, but is currently not enough to give him much more than pocket change for a pay check every week.

I would very much appreciate any input on what he can do right now to at least get a retirement fund started, even if he is not able to contribute much right now. What is our best option?

Thank you!

Note: He did have a retirement fund when he worked for Coca-Cola 4-5 years ago... I'm not sure if it is possible to access that account or not? Just figured I would include that bit of information.
Post Fri Oct 31, 2014 6:35 pm
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blixet
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Does he have an IRA? That would be a start that would allow for $5500 annual contributions. Depending on your tax bracket you could go with a traditional or a Roth. You should be contributing to a Roth IRA as well if you have been able to max out your employer's plan.

Beyond that, he can look into SEP IRAs or Solo-401ks for a higher contribution level.

The Coke plan can likely be rolled to an IRA. It would probably be a good idea unless there is some overriding reason to leave it where it is.

Information is more valuable sold than used – Fischer Black
Post Fri Oct 31, 2014 7:49 pm
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rlashure
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No, he does not have an IRA and neither do I, but I will definitely look into that. I know that our credit union offers traditional and Roth IRAs, but where/how would we go about getting an SEP IRA or Solo-401k?

I will have him look into the Coke plan.

Thank you!
Post Fri Oct 31, 2014 8:11 pm
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blixet
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Most major financial service companies offer plans for the self-employed and small businesses. Check for online information at places like Vanguard, Fidelity, Schwab, etc. Compare costs. When you get an idea of what to expect, make some calls and talk to the company reps for more info.

Here's some good basic information on the various options.

http://www.obliviousinvestor.com/sep-vs-simple-vs-solo-401k/

Information is more valuable sold than used – Fischer Black
Post Fri Oct 31, 2014 8:48 pm
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rlashure
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Great! Thank you so much for the information.
Post Sat Nov 01, 2014 1:48 am
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nickb123
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Make sure to look at all your options  Reply with quote  

I know that I am posting late to this thread but I just wanted to let you know that as your husband owns his own business he has the power to choose exactly what he wants to do with a company sponsored 401k. Most custodians for retirement accounts only offer the ability to invest in stocks and bonds and a few other typical options. If you would like to invest in real estate, gold or private placements with the 401k monies then you'll have to make sure you choose a custodian that offers self-directed investment options. Typically called a self-directed 401k or self-directed IRA. If you would like more information on self-directed IRAs or self-directed 401ks then read more at, http://www.accuplan.net/self-directed-ira.htm and hopefully you get exactly what you are looking for. It is great to know the most about all the retirement accounts and investment types available before you make any rash decisions.
Post Tue Nov 17, 2015 11:13 pm
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goldsnhearts
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Another vote for SEP-IRA, but your husband could also try the Simple IRA. You said that your husband's business is growing, so I do think that the Simple IRA is the ideal plan for him. It's designed for small business owners or companies who have few employees.
Post Wed Dec 30, 2015 7:55 am
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