Why Affiliate Marketers &
The Self Employed Need an IRA
Unlike 401k’s, which are accounts provided by an employer, the most common types of IRA’s are accounts that you open on your own. Others can be opened by self-employed individuals and small business owners. There are several different types of IRAs, including traditional IRA’s, Roth IRA’s, SEP IRAs, and SIMPLE IRAs.
Unfortunately, not everyone gets to take advantage of them. Each has eligibility restrictions based on your income or employment status. Another factor is that all have stipulations on how much you can contribute each year and penalties if you take your money out before the retirement age.
Now why do affiliate marketers/business owners need and IRA?
You know it’s pretty simple. An affiliate marketer is a self employed individual. If you or any self employed person earns over 400 dollars a year then you are required by law to pay taxes on your earnings. Because a self employed person does not work on a job and have money taken out of a check such as a 401k when they retire, other than the very small amount of money that comes from social security, you won’t have any money to take care of you when you retire. (it’s just that simple) Unless you ran a business that made you a lot of money, maybe millions, then when you stop working the money stops. Now if you are self employed and you have a full-time job that you have some type of plan set up with that job then you may not need an IRA.
How can I start an early retirement plan?
(three ways to start planning)
1. Invest in stocks and bonds, particularly if you start planning for retirement early. Decide which combination of potentially volatile, higher growth stocks and more stable, lower growth bonds is best for you.
2. Consider working after you retire. Start a small business or consult on a part-time basis to keep your mind active and to reduce the amount of money you need to withdraw from your savings.
3. Purchase an annuity. In the simplest terms,
an annuity is an investment contract that guarantees you a set income in return
for your investment.
Make sure you are not in position when you
retire that you almost have to start out from scratch with nothing or end up in
the soup line-so to speak because now is your opportunity to put money away
towards your future. When searching for the right plan for you make sure you do
a lot of investigating to find credible plans with a good reputation that are
suitable for you. Check with your bank to see if they have any plans available
and also talk with other business owners to see who is helping them with their
early retirement.
To learn more about paying self employed taxes visit this site
http://www.valueyourmoney.org/entrepreneurs/selfemploymenttaxes.asp
To
learn about investment opportunities, money saving tips, and money making
opportunities browse around this site www.imasmartmom.com
To
learn more about IRA’s and receive a free ebooklet please visit this site
Self employed 401k plans
This
article was written by Victoria Sheffield - copyrights©-all rights
reserved
(feel
free to repost article as long as a link to this site is posted with the
article)
