SEP IRA vs. Solo 401k for the Self-Employed: A Comparison

Self-employment can offer an excellent work-life balance, as well as other freedoms and lifestyle benefits! Hahaha…wasn’t that funny.

Seriously though, self-employment will likely be the cause of you working 80 hours a week…ha! This obviously leaves a ton of time to research the Solo 401k vs SEP IRA.

The plus side of this, however, is that you often enjoy putting in the hours because it’s “your company,” and you’ll be the one benefitting from any “windfall of money” your long, long hours create–so good work! Keep it up.

And because you are so “boss” and independent and whatnot, you also take on the responsibility of your own retirement plan–which you should DEFINITELY HAVE.

1) You Need Money to Stop Working Obviously, you need to save money for your eventual retirement, and (in my opinion) a more hopeful “Act 3″ (of a 4 Act Life), otherwise known (by me) as a down-shift or semi-early-retirement.

Why Do I Need a Retirement Plan?

This point is almost even more important than point #1. You need to utilize your retirement plan to help reduce your taxes, so you can have more money to put into #1.

2) To Reduce Your Taxes

So Where Do I Start?

Naturally, the financial industry has provided a host of confusing products, the research of which will probably result in your procrastination.

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