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.
You need to utilize your retirement plan to help reduce your taxes, so you can have more money to put into #1. It’s a little bit of a chicken/egg thing I suppose.
Naturally, the financial industry has provided a host of confusing products, the research of which will probably result in your procrastination. So, I’m going to boil it down for you, and compare two standard products: the SEP IRA vs Solo 401k.
A SEP IRA stands for “Simplified Employment Plan” IRA. It’s a retirement plan that is intended for businesses, and allows participation by owners and employees.
A Solo 401k (also can be referred to as an individual 401k or self-employed 401k) is available to business owners and their spouses (if involved in the business).