Question for Self-Employed: Have you started on Retirement Plan?

Discussion in '401k, IRA and Retirement' started by thestoryteller1, Jul 22, 2014.

  1. crimsonghost747

    crimsonghost747 Senior Investor

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    First it's important to get that emergency fund up to a level that you are comfortable with. Depending on the nature of your work and your personal situation (family, house, etc) anything between 2 and 6 months of expenses sounds good.

    And once that is done then start saving for retirement. Doesn't need to be much, it all adds up in the long run. While it's never too late to start, I'd much rather start soon with a small amount and adjust the amount you save depending on what's going on in your life at the moment.
     
  2. wulfman

    wulfman Guest

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    Yea I also have the "Now" mentality since I am only 31. Only thinking about the present. Both my parents warn me to think about the future and it is slowly seeping in. I am not a big spender though so that is a huge plus for me.
     
  3. Rosyrain

    Rosyrain Senior Investor

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    I often read about very young people saying that they are not going to worry about saving because they have very limited resources. When you are young, this is the best time to start saving because time is on your side and the money will have many years to grow. I wish I would have started saving much younger than I did.
     
  4. Profit5500

    Profit5500 Senior Investor

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    The best thing to do is to start putting some money away in the retirement account now. This way you would be able to have something nice for yourself now vs later on when you end up being too late. I think that you would want to look at the Self-employed IRA and see how that works so you can know the pros and cons. I don't know if you want to look at having a 401K for your company that you are running since I don't know what kind of company it is. Retirement plans are just those things that are tricky to deal with since you are too busy worrying about making money to put in money.
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

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    It's all about balancing their resources. I do understand where a lot of these young people come from, they really don't make that much money when they first start working. But as I said earlier, they don't really need to save that much either. Instead of going out every weekend for dinner and a few beers, you do it 3 times a month and save the $50 into your retirement account.

    Seeing as you are one of those who say that now, looking back, it would have been better to start earlier: what age did you start at?
     
  6. wulfman

    wulfman Guest

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    If you are young and open a Roth IRA you can be sure that will be a nice nest egg for you when you retire. As long as you put 1-2k a year in it. It could be almost 800k-1 million dollars if you deposit regularly. Also any income you earn from investing the money is non-taxable.
     
  7. Profit5500

    Profit5500 Senior Investor

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    I would not even know if I would even get to work a full time job or run a business yet. I am still applying and I have not got a reply back from anyone. I am not certain if retirement would really happen for me with this life.
     
  8. Kael

    Kael Guest

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    I started saving in my teens. But, after three natural disasters, there's nothing left. With all that we have endured, our savings is what had made our situation easier. We are still saving and investing, when we can.
     
  9. Muthoni

    Muthoni Guest

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    I make sure that all my earnings go to the bank to avoid overspending the money. You are a sensible person at 25 to think about this important issue. I am going to set up a fund for my retirement as well. I am late in starting this. It is better to be late than never, thank you for the sensible question.
     
  10. troutski

    troutski Guest

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    It makes sense to set up an IRA, but I'd rather just stick to regular investment accounts and reaping the profits there. The potential tax breaks are nice, of course. Still, I prefer being able to access my money whenever I'd like without hefty penalties for early withdrawals. An IRA is absolutely a smart move, but I prefer doing things a different way. You can always invest in an IRA and then a regular stock account, too, though.
     

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