The Challenges of Independent Consulting: Income and Retirement

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MBO Partners offers guidance on planning for retirement and dealing uncertain income.  The blog says:

Though retirement planning may seem daunting, there are a number of possibilities available to independent consultants. The best solution for you depends on many factors, including your goals and income, which you can discuss with a financial planner. A few options include:

  • SEP-IRA:Simplified Employee Pensions (SEP) offer a high amount of flexibility with low administration costs. For the 2017 planning year, contribution maximums are set at $54,000 or 25% of net income, whichever is less.
  • Solo 401(k): For independent consultants who wish to save more money than allowed by a SEP-IRA, solo 401(k) plans provide the opportunity to contribute up to $54,000 in savings in 2017, or $59,000 for those age 50 and over. Though they require more paperwork and administration than a SEP-IRA, solo 401(k) plans can also be borrowed from to cover emergency expenses.
  • MBO Partners: Independent consultants who run their business through MBO Partners are entitled to take part in our corporate 401(k) plan.

Read the full story at Independent Consulting: Income and Retirement | MBO Partners

For more information on last minute retirement strategies, please see Last Minute Retirement Planning Strategies

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