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?