What is the best retirement plan for a self employed 45 year old?

Asked by Steffanie

3 Answers

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There is no one-size-fits-all plan. Factors include how much you're earning, how much you want to save, when you want to retire, your tax bracket, and other considerations. I would urge you to learn about a Savings Incentive Match Plan for Employees IRA, also known as a SIMPLE IRA, which works well for the self-employed: SIMPLE IRAs 101 | 08.28.15 @ 00:16
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 07:59
Answered by Richard Eddy, Financial Adviser in La Verne, CA
There is quite a bit to consider in your question, and there may not be one "correct" answer. In order to guide you toward the best choices, it would be important to consider your income, what retirement assets you currently have in place now, your time frame with respect to retirement, your expected tax bracket in retirement, etc. A SIMPLE IRA can be a good choice, as might a "solo-401k" plan. So much depends on your specific situation.

Another thing to consider...you mentioned that you were self-employed. Is it likely/possible that you might take on employees one day? That could impact the retirement planning choices that you make now.

If you are working with a qualified financial planner/advisor, consult with him/her on this subject. They should be guiding you along...after all, that is part of their job! | 09.04.15 @ 22:58
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 07:59
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
The "Best" retirement plan is an individual answer.
Being self-employed does give you leverage when deciding which one is in your best interest.

Many of our self-employed folks prefer a self-directed retirement plan.
If you chose a 401k plan- take a look at your annual 404(a)(5) participant fee disclosure form.
http://www.dol.gov/ebsa/newsroom/fsparticipantfeerule.html

Here is some homework for you-Or you can always contact us directly to discuss your situation in greater detail. No obligation

Traditional & Roth IRA
https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits

SIMPLE-IRA
https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-SIMPLE-IRA-Contribution-Limits
SEP
https://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-Regarding-IRAs

Traditional ROTH & Simple 401K
https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-401k-and-Profit-Sharing-Plan-Contribution-Limits

PSP & KEOGH
https://www.irs.gov/Retirement-Plans/Choosing-a-Retirement-Plan-Profit-Sharing-Plan

DBP
https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Defined-Benefit-Plan-Benefit-Limits

It's not what you make, It's what you keep that determines your lifestyle. | 03.27.16 @ 19:58
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$commenter.renderDisplayableName() — {comment} | 12.09.16 @ 07:59
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