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

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

  1. jason

    jason Guest

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    I have not. I know I need to I just haven't made that step yet. I'm fairly young so I'm not entirely sure that I'll stay self employed for the long run. I'd like to but it just depends on how business goes.
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    Always take advantage of what ever tax breaks you can get! Every tax break $$$ you get is extra cash in your pocket.
    Of course if you need that money earlier, then it's best to split it and put something into a different account where you can withdraw it... then again you really shouldn't be putting the cash into the stock market if you plan on needing it in the near future.
     
  3. NYCWriter

    NYCWriter New Member

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    This is the fallacy of "saving" for retirement in an inflationary economy. If the current trend continues, $1 million in today's dollars in 30 years will be worth, at best, about $100,000. How far will $100,000 get a retiree in 2014? Two or three years, maybe? That's about what you can expect your million dollar nest egg to be worth in 2044.

    In the meantime, you've paid a considerable OPPORTUNITY COST in losing use of all that money over 30 years.
     
    Last edited: Sep 30, 2014
  4. troutski

    troutski Guest

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    This. Investment IRAs are pretty decent if you know what you're doing, but a straight savings IRA isn't worth it. It'll make the banks far more money than you'll ever receive back, especially when you compare the value of the money you put in at the time to what it's worth when you take it out.
     
  5. Profit5500

    Profit5500 Senior Investor

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    Man that blows to have lost your savings due to a natural disaster. Were you able to start a new savings plan? I have nothing but one dollar in my savings account since I do not have a job yet.
     
  6. Peninha

    Peninha Senior Investor

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    I make my mandatory discounts to social security, but I am afraid that when retirement age comes social security no longer exists. Can't afford anything else ATM though.
     
  7. Rainman

    Rainman Senior Investor

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    I prefer investing over saving cash for retirement. There are numerous ways to make $1M and more for retirement. You just need to plan and make wise investment choices. I currently have my eyes set on profiting with timber. 20-30 years from now timber will be very expensive and those who have the trees, will make some good cash from them.

    I got the land, I'll plant trees, and the money I'll make from them will be . . . more than I would have made elsewhere. In the meantime though I'll try out other ventures and find out if they can be as lucrative while I wait . . .
     
  8. owesem75

    owesem75 Well-Known Member

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    I personally think that applying the CD-RW CONCEPT in personal finance, regardless if I am self-employed or working for someone, will help me reach that feeling of stability that you were looking for. If you g-ooog-le this concept, you will realize that it is all about Cashflow management, Debt management, Risk management and Wealth management. If you are able to work on your cash flow by having a reliable source of income (working, business, passive income, anything that will give you streams of income) is managing your cash flow well. Obviously, once you have enough cash, you may now consider paying off all your DEBT, which then allows you to management it and make it off your concerns. Next, managing a business or just working is sometimes risky, you do now know what will happen to your loved one if suddenly there is something wrong that will happen to you being the bread winner, so having that needed insurance and health coverage is good in managing risks. setting up an emergency fund also included in this risk management. finally, if you have enough cash, paid off your debt, secured yourself and your family and your assets and still have more than enough cash to spare, you can now involve yourself into wealth management where investing and setting up new businesses will be your only concern.

    source of income (CHECK!) + paid off debts (CHECK!) + secured myself, loved one, assets (CHECK!) + invest and set up new businesses (CHECK!) = Feeling of Stability.
     
  9. ascuz

    ascuz Member

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    I've just started with a Solo 401K. If any of you are looking for a good option, you should check that out. Much less paperwork required and your business can match more of your deposits. Regardless of what type of account you decide to set up, the most important thing you can do is deposit regularly as if you are paying a bill. That way, you get in a good habit of depositing without really even thinking about it.
     
  10. Peninha

    Peninha Senior Investor

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    That is true, nothing like putting some cash aside for the rainy days, the issue is when the rainy days are always coming and we can't put anything aside...
     

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