Business owners start out often wearing many hats. Some have goals to grow their business, and ultimately sell it as part of their retirement. Others may be consultants, sole proprietors who work for themselves and make enough money to set aside funds every year in their retirement accounts.
Linda has been a consultant, working for two companies on contract for many years. Most of her expenses are paid by the companies that she works for. With the income that she makes, offset by her home office deduction and miscellaneous other items, she is able to fund a retirement account with the maximum amount allowed by law.
We helped her open a single 401(k) plan. With the deductions that she is entitled to for funding this plan, she can also contribute to a Roth IRA. In her annual financial plan reviews, she is able to see how this saving strategy is helping her to close in on her goal of retirement at age 62.