Saving for Retirement Is Possible Even Without Employer Contributions
You don’t need a 9-to-5 for a retirement fund. Saving for retirement is possible even for bloggers. We go through your options here.
You love to blog, and it shows in the level of passion and perfection you place into your work. There’s no other job that you would enjoy more, and the money you make put the cherry on top.
The problem is, even though you may be settled in now, you haven’t thought much about your future.
That’s right. Retirement may seem like it’s far down the road, but it’s coming. And if you aren’t prepared, you won’t have any funds saved up when the time comes.
Doesn’t sound like a good place to be, right?
Luckily, you can stop this from happening by saving for retirement early on. How, you ask? Read on and you’ll find out.
Saving for Retirement Can Start with Getting an IRA
An IRA is one of the best ways to go for any freelancer.
An IRA is an individual retirement account. How the IRA effects you depends on just how much income you make and whether you or your spouse are employed and have another retirement plan elsewhere.
So how does it work? Basically put, the IRA allows you to save up similar to a 401(k), but your contributions can be fully deductible, partially deductible, or entirely nondeductible depending on income and other employment.
At age 59 and a half (yes, they’re very specific) you can begin drawing your funds without penalty, although they will be taxed as ordinary income.
You can continue to store up funds until age 70 and a half. After that, you can no longer place any more money in the IRA savings and must begin taking required minimum distributions.
Or, Try a 401(k)
Here’s one thing to know: a 401(k) plan is not limited to only full-time, steady employers. You can easily get the same deals as they do.
A 401(k) is fantastic for those who are single, as you can stock up money with little backlash, and works in the same manner as any 401(k) from a part-time or full-time job.
The only difference between a freelancer’s and full-timer’s 401(k) is that the freelancer has to set it up themselves. Otherwise, you really don’t have to worry about any major monkey wrenches being thrown in the situation.
Health Plans Can Help, Too!
Who would have thought that your health plan could benefit you in retirement?
If you have a high deductible health plan or an HSA (health savings account), you can build your nest egg through your plan. Each year, you can contribute a certain amount to save for retirement.
If you’re single, you can contribute up to $3,400. That number almost doubles when you’re with a spouse or have a family, and you can add in an extra grand once you’re over 55. Sounds pretty good, right?
Look into these options and see if they’re the right choice for you.
For more information on how to invest, plan, and save, we suggest you check out Investormint, Inc. You can learn all about what it takes to get your finances on track and make the best future for you.
It’s All About the Blog
Now you know everything there is to know about saving for retirement as a blogger. Why not learn about other neat blogger tips while you’re at it?
At A Blog on Blogging, you’ll find everything you’d ever want to know about how to be a successful blogger. There’s a lot of information on how to start and maintain a blog, as well as ways to turn your financial blog into a big deal.
Have a question you’d like to ask? I’d love to hear it! Just reach out to me and I’ll be sure to answer everything you’d like to know.
Come check out the site.