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What are Self-Employed options to save for retirement without a 401(k)?

I am self-employed and trying to save for retirement. I make $40,000 a year. I have $150,000 in an IRA and contribute $6,500 to it a year. What else can I do to save for retirement without a 401(k)?

Joshua Escalante Troesh was ranked #1 nationally by Investopedia Advisor Insights

Joshua Escalante Troesh was ranked #1 nationally by Investopedia Advisor Insights

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As a self-employed person you have the ability to start your own company retirement plan, which will unlock a lot of advanced financial planning techniques you can take advantage of. You actually have a lot of options including establishing your own Solo 401(k), SEP IRA, or SIMPLE 401(k).

Each has its own advantages depending on your individual tax, business strategy, and lifestyle circumstances. All of them, however, will allow you to put away far more than $6,500 toward your retirement.

If you are interested in starting your own retirement plan, my firm can help you set one up relatively cheaply. (These plans can become very expensive if set up through one of the large national companies). Before making any choices, I recommend reading this nonprofit guide on how to set up a 401(k).

Consider Changing Health Plans

Another option is to change your health plan to a high deductible health plan. This will give you access to a Health Savings Account (HSA), which can be extremely valuable to you. The plan contributions are tax deductible and funds can be withdrawn tax free for qualified expenses. Effectively, if you pay for medical expenses from other funds, the HSA becomes another retirement account.

Other Planning Considerations

As a business owner, you have a lot of other opportunities available to you, which proper financial advising can help you take advantage of. From cash flow strategies to debt management to investing, typical financial advice doesn’t always apply to business owners. A significant portion of the tax code is written for business owners, and you will want to ensure you benefit from any tax advantages available. Similarly, you have unique risks such as lawsuits, which should be planned for and managed.


Joshua Escalante Troesh is a Tenured Professor of Business and works with people across the country on their personal finances. He specializes in the unique planning needs of entrepreneurs and business owners. To explore working with him on your personal financial planning and investment advising needs, simply schedule a free Discover Meeting.


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Retirement Planning, Business AdvisingJoshua Escalante Troesh, CFPOctober 8, 2019Building Wealth, Business Owners, Retirement Planning, HSA, Health Savings Account, Solo 401(k), 401(k)
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*Ranked #1 advisor on Investopedia Advisor Insights November 2018 to July 2019 when Investopedia discontinued Advisor Insights. Investopedia Advisor Insights ranking based upon the helpfulness of answers to questions posted on the Investopedia website as voted by Investopedia’s audience. Ranking does not consider investment returns, client satisfaction, or other factors. Registration as an investment advisor refers to legal licensing of the advisor and does not imply a certain level of skill or training.

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Joshua Escalante Troesh (“Purposeful Strategic Partners”) is a registered investment adviser offering advisory services in the State of California and in other jurisdictions where exempted.  Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Purposeful Strategic Partners in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

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All written content on this site is for information purposes only. Opinions expressed herein are solely those of Purposeful Strategic Partners, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness.  All information or ideas provided should be discussed in detail with an investment advisor, accountant, or legal counsel prior to implementation.