When you are self-employed your primary concern when you first start out is going to be to simply make it over the hump and survive. After some time you may recognize the fact that you are indeed on firm footing, and at this point you have some advance planning to do with regard to retirement.
When you work for an employer you are usually going to be offered the opportunity to participate in a 401(k) plan, and many times the employer will match your contributions.
On the other hand, if you are someone who is self-employed you are dealing with a different set of circumstances.
It is up to you to start to save for your own future, and it is possible to contribute into a self-employed 401(k) plan if you are self-employed. A Simplified Employee Pension Plan (SEP IRA) would be an additional option.
Many people who are self-employed will have the opportunity to continue working after the typical age of retirement and actually enjoy doing so. You can make any amount of money and still receive your full benefit after you reach the full retirement age as defined by the Social Security Administration. This can certainly be of great assistance as you supplement your Social Security income.
The best way to explore your options and piece together a plan that is right for you is to discuss the future with a good local Indianapolis retirement planning attorney. Our firm has a background assisting small business owners in the community and we would be glad to provide you with a free consultation.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.