Millennials, Here's How to Save for Retirement When You're Self-Employed

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    How to Save For Retirement When You’re a Self-Employed Millennial

    1. The Giving Budget

      May 12th, 2017 at 4:31 pm

      Very helpful! I personally do a ROTH IRA and a Simple IRA as these made the most sense for me as an entrepreneur and wanting to create a retirement for me so I don’t have to work forever!

      I totally agree that doing these also helps keep more money in my pocket! Which is always a good plus side to anything!

      Saving for retirement is so crucial. I put investment contributions as a line item on bills. It shouldn’t be a “second thought” for you after all your bills are paid.

    2. Stefanie

      May 12th, 2017 at 4:33 pm

      Thanks for sharing your strategy. Having an investment contribution as a line item in your monthly $ plan is SO smart!

    3. Michael @ Super Millennial

      May 14th, 2017 at 2:17 pm

      Great article Stefanie! I just took the leap to self-employment last week and wanted to look into doing this for my future 🙂 SEP IRA will be perfect

    4. Stefanie

      May 14th, 2017 at 4:36 pm

      Congrats on the leap Michael! SO exciting 🙂

    5. Durga

      May 19th, 2017 at 1:00 am

      Being an Employee, you are out of all the tensions of retirement planning and savings as the employer will provide you with suitable infrastructure for the employees. But being an Entrepreneur you must be planning for the retirement savings . Here are some types of IRA for you.

    6. Stefanie

      March 7th, 2018 at 4:38 pm

      It’s definitely nice to have an employer take care of these things for you. Though if we don’t have those benefits, we can serve as our own ‘HR department’.

    7. FrugalView

      July 28th, 2017 at 9:04 am

      Very useful article, its something I haven’t really had to experience yet but definitely will soon as I move to being self employed and as state pensions seem to be going the way of the dodo here in the UK. I think the best way with any type of savings is to treat them as a cost so that you just let them leave your account as a standing order each month and treat it like a utility bill. It’s a lot easier mentally to do that than having the money sat in your account and having to make the conscious decision to help your future self.

    8. Stefanie

      March 7th, 2018 at 4:37 pm

      Exactly! It’s the ‘pay yourself first’ mentality in action. I ‘pay myself’ at the beginning of each month. Right when I pay my rent 🙂

    9. Sagar Nandwani

      August 26th, 2017 at 7:44 am

      I treat my retirement contribution like a monthly bill and it is automatically deducted from my chequing account. Not making it is no more acceptable than missing my mortgage payment.

    10. Stefanie

      March 7th, 2018 at 4:36 pm

      This is SUCH a great mentality. Making our savings and retirement contributions non-negotiable.

    11. Derek @ MoneyAhoy

      August 31st, 2017 at 4:51 pm

      One great thing about being self employed is that you can put away even more towards retirement in a tax advantaged account. I think I remember reading you can stash up to $54k per year! It is confusing when you are first getting started, but there is a ton of info out there to help one decide the best retirement savings for their situation.

    12. Stefanie

      March 7th, 2018 at 4:36 pm

      Absolutely. The limits on the SEP for example are much higher than just the ROTH.

    13. OMGF

      September 29th, 2017 at 11:29 pm

      This is super helpful. I’m looking to start a business in the next six months. This is a lot to think through. If you contribute to an employer sponsored 401k can you put side hustle money into one of these IRAs? I’d love to siphon off more pretax money into one of these.

    14. Stefanie

      March 7th, 2018 at 4:35 pm

      Yes! You can contribute to an IRA in addition to your employer 4o1k plan.

    15. Mkemo London

      January 16th, 2018 at 10:40 am

      Saving for retirement is not optional. Thanks for laying out the options open to self employed people. Are there any investments you would recommend for 30 somethings to invest in?

    16. Stefanie

      March 7th, 2018 at 4:39 pm

      I like to keep my investments simple with low fee index funds and ETFs, both in my retirement accounts and out.

    17. YMOC Episode 43: Saving for Retirement as a Self-Employed Millennial with Stephanie O’Connell | Keepify Finance

      March 10th, 2018 at 1:38 am

      […] How to save for retirement if you’re a self employed millennial with Stephanie O’Connell. […]

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      March 30th, 2018 at 12:29 pm

      […] Related Reading: How to Save for Retirement When You’re Self-Employed […]

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      March 30th, 2018 at 12:31 pm

      […] Admittedly, I didn’t arbitrarily pull $29,500 out of thin air, it’s the amount of money I’ve personally invested since I started investing in 2011. (Not as much as I’d like, but not terrible for not having had perks like steady employment and 401k benefits). […]

    20. Panda

      April 8th, 2018 at 12:52 pm

      My question, are there any real advantages to having a 401K account? My 88 year old father, retired self-employed businessman, never had one. However, he does have small qualified account, comparatively speak to his overall funds. For a first-time investor, he should look at both Roth type accounts, IRA and 401K, in the mix with one’s tax-deferred accounts.

    21. Stefanie

      April 8th, 2018 at 5:02 pm

      One of the biggest advantages of the 401k account that you don’t get from an IRA for example is the employer match. Not all employers offer it, but if yours done, it’s a huuuge advantage – literally free money.

    22. Ashley Hagood

      May 21st, 2018 at 2:52 pm

      Just curious in your opinion(s).

      What is recommended for business owners with only one employee, such as an assistant, not my spouse?

      Thank you for any advice!

    23. Stefanie

      October 30th, 2018 at 4:58 pm

      Hey Ashley! Great question. A ROTH IRA is an excellent option for self-employed millennials and likewise their one employee. If you wanted to offer some kind of match program for your one employee, my suggestion would be to have your employee utilize this as well, or the SEP 401k.

    24. Sarah Taylor

      July 6th, 2018 at 6:14 am

      Millennials who pursue self-employment know there are lots of perks to being your own boss. You can make your own hours, set your own dress code, and decide where and when you will work. However, there is a downside. As a self-employed Millennial, you do not get a retirement savings plan through your employer.

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