Aug 19, 2020
Are you self-employed or a small business owner looking to
reduce taxes and invest in your financial future?
In this podcast episode, I break down the different types of investment accounts you should be thinking about establishing.
The primary accounts discussed are the SEP-IRA, Solo 401(k), and Traditional 401(k).
Depending on if you have employees (and how many) is a significant factor when deciding which account to use.
The SEP-IRA is the easiest and most cost-effective (from an administrative standpoint) to establish. However, if you have more than a few employees, the matching requirement can quickly become expensive.
In which case, considering the 401(k) could make more sense. The great thing about the current small business 401(k) landscape is that there are more low-cost third-party solutions than ever before.
If you're not currently deferring taxes and investing for your financial success outside of your self-employment or business, you'll want to give this episode a listen!