Asked anonymously

My husband is self-employed. How should we start planning for retirement?

Retirement is a few years down the road for us, but we are not sure where to even start?

Report Question Report

  Leave Answer

Log in or sign up with email
By submitting you agree to our Terms of Service

  Answers  |  4

May 20, 2016

Hi,

I do not know how old your husband is, but the earlier you start saving for retirement the better. You can start a 401(k) plan and put away $18,000 per year and an additional $6,000, if over the age of fifty. However, that is only if he is drawing a salary of at least that amount. If he has an S Corp and is drawing minimal salary, his election is limited to salary. Unearned income cannot be used for pre-tax retirement planning. After tax contributions are limited to IRA contributions of $5,500 per year.

$commenter.renderDisplayableName() | 05.30.17 @ 03:54

{comment}

May 20, 2016

I would suggest choosing how much you can afford to contribute in any given year. An IRA has a $5,500 limit. A SIMPLE IRA has a $12,500 limit. A SEP IRA has a $53,000 limit. You already got the 401(k) limit, so decide which dollar amount fits best and then choose the retirement plan that fits. Obviously there are many more details to this answer, but this is a good place to start.

$commenter.renderDisplayableName() | 05.30.17 @ 03:54

{comment}

May 21, 2016

Hi,

Before you start, perhaps a better question is to understand where you want to end up financially in retirement? Then, work backwards to ensure that you are staying where you need to be financially. When I was a kid (perhaps, I still am), my father (who did all the driving) made it a requirement that we knew where we were going and how to get there BEFORE he would start the engine. Certainly, we rarely traveled in a straight line and there were bumpy roads. We valued our time together immensely and focused on making the best of it.

Feel free to contact us directly. We may even plan a trip together. No obligation.

It's not what you make. It's what you keep that determines your lifestyle.

$commenter.renderDisplayableName() | 05.30.17 @ 03:54

{comment}

June 21, 2016

MoneyTips offers a free Retirement Planner to help you calculate when you can retire without jeopardizing your lifestyle.

$commenter.renderDisplayableName() | 05.30.17 @ 03:54

{comment}

  Our Professionals Are Available to Help!

  Can't find What You're Looking For?