Working for yourself means giving up certain benefits, like a workplace retirement plan. But when it comes to saving for old age, you still have plenty of choices.
Which retirement account you choose depends on how much you earn and the amount you want to contribute in any given year, financial planners say. Here are your best options (assuming you work solo and don’t have employees).
What if you can afford to stash away more than $5,500 this year? Consider opening a simplified employee pension plan, or SEP-IRA.
SEPs are available through brokerages, such as Fidelity Investments and The Vanguard Group. And you can put away a significant amount, as much as 20 percent of your net self-employment income, up to a maximum of $53,000 in 2015.
“SEP-IRAs are easy and inexpensive to set up, and you can put in a good chunk,” said Kristi Sullivan, a financial planner in Denver….