Retirement Planning for a Self Employed Person

As self employed person, you must provide for your own benefits as if you were working for a company. There are several options available to you. Some of the retirement planning devices you may want to consider are:

IRA- Individual Retirement Account Keough-

SEP-IRA - Self Employed Pension Money Purchase Pension Plan.

Defined Benefit Pension Plan Profit Sharing Plan

Recently, the ways you can fund your pension plan have been expanded and your options are now incredibly flexible.

Since the circumstances of a self employed business owner vary from person to person, the type of plan you choose and the dollar amount you invest in your pension plan cannot be explained here. All of these plans should be tailored to fit your particular needs and should be instituted only with the approval of your accountant. Your insurance agent should be willing to meet with you and your tax planner to make sure your have the funds you need to sustain your lifestyle on retirement while maximizing your tax benefits. In addition to retirement funding, you will need to provide yourself with the normal benefits that an employer would provide for you. These include long and short term disability insurance so you will have an income should you become sick and unable to work, health insurance, life insurance, and a savings vehicle. If you have a partner in your business, these may also include life insurance funded life and disability buy-out to allow your business to thrive under should one partner be unable to work