Are self employed people screwed or are we all?

My dear friend stumbled upon an article that got the juices flowing.  We may need more than one million dollars to retire safely.  I kind of knew this in my head, but this was the first time we talked about this problem in detail.  Going further, since he is self employed, he doesn’t have instruments like a company 401k to assist.  “So what is a self employed business owner supposed to do?!?!”

Not like I am a financial advisor by any means, but I thought, “Ok, I got this.”  Doing my best Sam Watterson impersonation, “you have many investing vehicles at your disposal, most people look at the stock market or real estate.”  I thought I made a wise suggestion, but not so fast…  “Lot of people lost their shirt in the stock market a few years ago.  Same can be said about real estate.”  I dunno why, I got a little miffed.  Perhaps I was subconsciously feeling the heat as well?  I fired back, “Well, if that’s not for you, if your risk tolerance can’t handle it, perhaps you can look at CD’s?!?!”  Real mature, Buck.

I then found an article talking about self employed IRA’s and forwarded it on.  Sadly, that is tied to the stock market so what is a person to do?  That article did mention you need to spend time growing your business.  Easier said than done during these difficult times.  Guess I got some reading to do over the weekend.

What are some of the ways you are planning for retirement?

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4 Responses

  1. Your friend definitely should concentrate on growing his business, forget retirement saving until the business is making good money. Then he can contribute to Roth IRA, SEPs, solo 401k or other plans. I’m not that familiar with all these though.
    In any case, if his business is successful and making a lot of money, he should be set for retirement right?

    • buck says:

      Good advice. I think self employed business owners wear so many different hats sometimes they can’t see straight. But you’re right, the bottom line is making the business successful. Let’s hope for a better 2011!

  2. You had some good points right here. I carried out an investigation on the topic and got the majority of individuals will agree with your blog.

    • Buck says:

      Thanks for the comment! This reminds me to continue working on my retirement plans. I should do a round up of the best retirement posts. This will help me learn more and possibily help others as well. 🙂

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