What is the best retirement plan for solopreneurs? It’s high time to implement best retirement plan you’ve never heard of: the Solo 401k.
So, you’ve got a high cash flowing business and you know you need to take the next step to make certain that you keep as much control over that cash as possible. You have plenty of money to max out your IRA and set aside the rest in a brokerage account, but you wonder if there is something better out there. Enter the Solo 401k.
Solopreneurs are uniquely positioned to take advantage of the best retirement and tax planning strategies available. Self-employed people have control over their personal finances that you cannot achieve as an employee. Being a solopreneur is even better because it gives you the freedom to be as creative with your plan as you desire. Moreover, you aren’t boxed in by following non-discrimination rules related to your employees. Accordingly, you can build an extremely generous retirement plan with very little extra cost associated with it.
So, how do you start a Solo 401k? Starting a Solo 401k is fast and simple. You can administer it yourself by selecting a custodian and they will help you get started. Schwab, Fidelity, and Vanguard are three popular options to choose from. They have prototype plans so you can complete the process quickly and easily. If you want require something a bit more complex you can always find a third-party administrator rather than use a prototype plan.
There you have it: the basics of the best retirement plan for solopreneurs. If you want to learn more about the Solo 401k and financial planning topics geared toward solopreneurs follow this blog and look for more detailed content on the site here and here.