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

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

  1. thestoryteller1

    thestoryteller1 Member

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    I started being self-employed 2 years ago, and obviously I have to arrange my retirement plan on my own. However I haven't felt yet stable for long enough to start even setting aside anything for retirement, the best I have done is set side some emergency fund. Have you already started your retirement plan? How late do you think is too late to start it? I feel like by the time I get to it, I may have trouble to catch up to people who started working officially for some company when they were 22 or something. I'm 25 now...
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'd start putting something away as soon as possible. And hopefully your business is one that you can sell for a nice chunk of change at some point. If you can walk away with millions or more after paying off any debt, paying taxes on the profits, etc, you'll be doing pretty good.
     
  3. turt

    turt Guest

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    I put money aside early, before I started my business. You have to look at it this way though, you have a great investment which is your business. It's worth something and gives you options working for someone else can't give you.
     
  4. Kate

    Kate Senior Investor

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    While some people will tell you it's never too late to start, I think it's never too early. I know that feeling stable is very important before starting something like this, but there are small ways to start. Like is there something... anything, you can give up and put the money into what will become your retirement fund? A Starbucks or two a week... a more expensive than necessary meal out... cable TV (hehe you probably won't go for that one, but I don't have it and don't miss it.)

    What I'm saying is that if adjustments are made, some of your expenditures now may actually be able to be saved in your special account.

    That said, you already have an emergency fund, and that's great! Not many people can say that, so you're definitely on the right path and probably ahead of 80% of self employed people just 2 years out with your business!
     
  5. ReinbachThe3rd

    ReinbachThe3rd Active Member

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    Always start early on your 401k, especially since you aren't getting a match from being employed by a company. I leaned a lot on that with my previous company that offered a 4% match for a period of time but now that I'm more freelance I badly miss it. Try to find something in your personal life that you could do away with and start socking away. It gets a LOT harder to find that money later in life when more complicated matters arise from getting older.
     
  6. Collin1000

    Collin1000 Member

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    The sooner you start, the better, because you can put less in over time and still get the same net in the end. Interest is only part of it: It's also the inertia of it being put away. Once you sock that money away, you're not going to blow it on silly purchases. It's always a better investment to invest in yourself and save, even if it's a small amount at the start.
     
  7. Rosyrain

    Rosyrain Senior Investor

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    My advice would be to start saving now, even if it is $5 a week. That $5 will add up and collect interest. You can always add more when you make more money. I started my retirement plan with $20 a paycheck and I never missed the money.
     
  8. workinglady20

    workinglady20 Well-Known Member

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    I have not started yet since I began working from home but I plan on doing this soon because it's so important for my future. There are a few things I need to get done and a retirement plan is definitely one of them. I've always been good about saving my money.
     
  9. wulfman

    wulfman Guest

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    Aside from running a good business, you will have to save . Make a plan to put a certain amount away for retirement. Don't keep investing it and hope to retire a millionaire . Heh
     
  10. ReDGuNNeR

    ReDGuNNeR Member

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    I personally haven't started saving for retirement as I'm much more interested in the "Now" at the moment being a young adult. But like others said, there is no better time than now to begin putting money away, even if its a low amount. This thread has helped me rethink my priorities so thanks for your thoughts guys.
     

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