Being his own boss, Mr. Morse has no access to the traditional company 401(k) plans offered by many corporations to their employees, but he plans to take advantage of a little-known retirement saving option for self-employed individuals called a Solo 401(k).
4 comments:
I have never heard of a Solo 401(k). It sounds like a great asset, but I wonder how it actually transfers into application. You can't use a Solo 401(k) when you have employees, so your business actually has to be just you (or maybe your spouse). This can be really tricky, but I can see how it may be useful for self-employed individuals in the media market or those with an online business. Then you can just work from home, and depending on how successful you are, you can applying for a Solo 401(k).
It seems great, but there is always a catch upon closer inspection.
This is very interesting and I'd be interested in seeing how this could be used in the theatre world. I know that 401(k)'s are out there and that they are very good to have for when you retire but to be perfectly honest this is one area of the industry that I know just about nothing about. It's something that concerns me for my future and what I'm going to do in my later life. I'd love for there to be a Business 101 class for theatre practitioners that we could take to get more information on this, but that would involve finding someone who knows this world and the finance world, and those people are few and far between. I'll have to keep this in mind as I move forward with my career.
I think the reason this is not very well known is because it does not apply to most people. For those that it does, it isn't that hard to find either. With access to the internet this becomes one of thousands of articles about it. Although I wish retirement funds as whole were talked about more. I'm not really sure where it would fit in, high school, college? but there are a lot of students who would be well served to be taught about what is out there and that how much more you can make if you start earlier is astounding.
It would probably be years before I knew that a Solo 401(k) was available without this article. This summer, looking forward with regards to paying for college and maybe having some money to start life after, something that came up was pension. If I don't work for the same company consistently, what does that mean for my retirement? It is great to see that there are options if you would like to contribute to your retirement and that they are similar to a regular 401(k) plan. I of course would want to look more into it in the future, but it's an idea to stow away for a few years.
Post a Comment