How to plan for retirement if you are self employed?

[Shaf]

When you work for the government or another person's business or establishment, there are usually rules about when and how you can retire, and what to expect after that in form of gratuity and pension.
But when you are self employed, as the boss you make all the rules. This means you have to plan for your own retirement, when and if you ever do so.

It's important that you still have a source of income when you no longer work, and it might also be important to you that the business does not die off once you quit. You may also still want to be a part of the business after you retire, so all these would have to be considered early as you make plans.

How would you plan for retirement and what's your alternative income source after that if you are self employed?

 

[Bookwormlux]

People who already self-employed are already in an advantaged position whereby the get to determine what they want to do and how to go about it .

If you are somebody who really understand what is happening in our world today , you will make sure you do as much planning as possible so that when the Time comes to retire, you would honorably do so , and not end up spending all your lifetime working hard just to make money and sustain yourself .

There are different strategies in which different individuals can use to secure their retirement period, and using any of them is solely dependent on individual preferences or how much potential will get to see in the available options .

The first option that a lot of people really consider as the surest way out is by engaging in a lot of savings .
Although some experts generally recommend it, but I believe it is the safest way to secure the future, because when you have a lot of savings they will enable you to make sure you're not just spending so much money without accounting for it .

As a self-employed individual , you can even make sure that you are investing your money on assets that will be bringing passive money for you if you retire .

 

[eldavis]

I think for those who are self employed, the best way to plan for their retirement is to create other sources of income. It's never a good idea to just rely on a single source of income. You can create other sources of income for yourself by Investing and at the same time savings helps alot. Investing in real estate is a great way to prepare for your retirement. You could also prepare a mini store where you sell little things like provisions and foodstuffs.

 

[btaliat]

Most time, people that are self employed are always fall victims of unplanned retirement. They always have the feeling that the business may survive them till their old ages. Though, this is the prayer of every entrepreneur but we still need to make sure we plan ahead in case of in casity.

The commonest way to plan for ones retirement days is by saving. There is need to have some percentage goes for saving maybe monthly or at some interval. Continuous saving may liberate one in the future. The only thing however is that for some people that live in the third world need to save in foreign currency. This will make them to prepare against future inflation rate.

The best way to plan for the retirement however is through investment. There is need to invest whether it is offline or online. However, one needs to be very careful while investing. This is because there are many websites these days that are only against people's money. There are even some offline investments that are not that legit.

One can also try to buy shares from banks and other financial institutions. This will also serve as a way of preparing for the retirement days. A self employed person should be thinking of retirement when his age is not productive again..

 

[Rachael]

There are so many people who are self-employed due to lack of good job opportunities or based on their personal choices. Planning for retirement is very essential and should be a conscious act which should be adopted by everyone. In a country, no matter how well developed it is, it is impossible for the government to cater for all the needs of the citizens but is the duty of the government to create an enabling environment which can foster the progress of citizens. Some people that operate only businesses only have that one venture to fall back on even when their bones are feeble or they decide to decrease the pace at which they work.

I think one of the best ways to plan for retirement if you are self-employed is by re-investing some part of the profit into the business and saving up money so you can invest either in stocks and shares or real estate investment. There are many legitimate stocks and shares that an individual can invest with and the most recommended are telecommunication companies. During retirement, it is good to live a peaceful life without too many worries or regrets which is why the proper thing to do is making hay while the sun shines.

 

[Alexandoy]

I was a regular employee of a big corporation that I was able to build up my retirement plan in the government program. However, when I was 55 a friend who is working in the government office that handles the retirement advised me to continue paying the premium so that I would have a bigger pension. That time I was with a non-profit organization that has no policy for the retirement program. I made some computations that if I pay monthly for 5 years I would be receiving a higher monthly pension. My computation yielded that the difference is very minimal. What I did was to save money in my bank account instead of paying the premium of the retirement policy. When I finally retired and started receiving a smaller monthly pension it is all right because I have a substantial money in the bank that I had saved instead of giving it to the government.

 

[Kendy]

In recent times, planning for retirement has become one of the hardest thing to do, most especially for self-employed individuals. Retirement is unavoidable for every individual. There will come a time, where our bones are to feeble to engage in our routine work. Therefore, it is necessary to plan towards retirement and also it should be fine effectively. Being self-employed comes with a lot of challenges. Those individuals who engage in 9-5jobs might have an upper hand here, because when you become an entrepreneur, you would automatically spend even more time than if you are working normal routine 9-5jobs. In being self-employed, if you do not maximize sales, it means there is no other way the money would be coming from because of the limited streams of income.

As a self-employed individual, there are feasible ways to plan for retirement and these include; being intentional - when you are intentional and have goals that needs to be accomplished, it would spur you to take your business seriously, investing - when it comes to investing, this would always remain the biggest part of a retirement plan and the most reliable, especially in real estate investment and stocks and shares from reputable companies.