Freelancers Saving for Retirement
Are you a freelancer? If so, you’re part of a third of the U.S. population! And, Intuit predicts that number will continue to grow.
With a growing number of freelancers in the workforce, a bigger problem is being realized – nearly half of these freelancers do not have a formal retirement plan.
Though retirement is a goal for many Americans (some would even say it’s their “right” after years of hard work), the liabilities of retirement now far outweigh the assets. Those who are self-employed, working “gigs”, part-time jobs, or contract work don’t have access to employer-sponsored plans like a 401K. So, they have to design their own.
Saving for the future requires sacrifices today. Disciplined consistency is key to success. And, budgeting to save helps you control spending and reach your long-term goals. That means you have to live beneath your means and stay focused.
Solomon said, “Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.”
In other words, prepare for the future… today.
He also said to diversify. You can design your own retirement savings plan without brokers or bankers who will charge you fees and commissions.
Solo 401K plans are popular because they offer tax benefits and offer higher annual contribution limits. You can open an account online in about 30 minutes.
The SEP (Simplified employee Pension) IRA is an option if you have employees. Plus, simple IRAs are an option. They differ on contribution amounts, rules regarding employees, and tax benefits.
Do some research and take action. Don’t delay! Time is valuable for your investments to compound. It will start out gradual, but years of habitual saving will cause those funds to grow exponentially.
If you have more questions or need some prayer and encouragement, call us at the Crown helpline 800-722-1976 or go online to crown.org