Are the Self-Employed Retirement Ready?

The self-employed need to intentionally plan for retirement.

You are an entrepreneur.

Being self-employed, you are your own boss.

You have responsibilities.

Lots of them.

According to a recent Think Advisor article titled “Many Self-Employed Americans Aren’t Saving Enough for Retirement: Transamerica,” you should not neglect your retirement planning in the midst of these demands.

Even if you are one of the 62 percent of self-employed Americans who want to continue working when they retire, you still need to prepare financially for retirement.

Just because you plan to continue working does not mean you will be able to do so.

You may not be able to work due to medical reasons or the job market.

About 15 percent of self-employed Americans are saving nothing, zippo, zilch for retirement.

Thirty percent are only saving infrequently.

Many self-employed take early withdrawals or loans from their retirement accounts, too.

Yikes!

About 70 percent of self-self-employed individuals are expecting a majority of their income to come from Social Security.

Spoiler alert: Social Security alone will not be sufficient tofully fund retirement.

Fewer than 40 percent plan to use 401(k)s, 403(b)s, or IRAs for income.

Do not be unprepared.

Take advantage of IRA and Roth IRA accounts.

Depending on your situation, you may want to consider a Solo 401(k).

Start saving now to set yourself up for success in retirement and contact an experienced financial planner.

If you need a referral, then ask your estate planning attorney.

He or she likely knows those to consider and those to avoid.

Reference: Think Advisor (July 29, 2019) “Many Self-Employed Americans Aren’t Saving Enough for Retirement: Transamerica”