Being an independent contractor definitely has its pros and cons. Saving for retirement may be top of mind but figuring out how to plan for a healthy financial future can be a bit tricky for self-employed individuals. Most self-employed workers do not have an employer sponsored retirement plan, such as a 401(k), so that planning relies solely on the worker.
There are many different ways to approach retirement planning and it is a personal decision for agents. There are also many determining factors in planning for retirement; how long do you want to work? Where do want to retire? Do you want to travel? Do you want to help pay education costs for children or grandchildren? Do you anticipate large medical expenses? These questions, plus many others, are all things to consider when choosing your retirement saving options.
While I am no means a financial planner or an expert on investing, I do want to share some tips, insights and other industry information that may make you think about your financial future differently, or perhaps spark an idea you didn’t know you had!
Did you know? The National Association of REALTORS® (NAR) has recently partnered with Morgan Stanley to offer resources for financial planning, including retirement. NAR’s 2019 Financial Planning Report found that just 52 percent of REALTORS® actively save for retirement, while nine out of 10 NAR members reported difficulty saving for a rainy day. NAR believes this new member benefit is much needed and very beneficial for REALTORS®. Morgan Stanley is extending special offers and rates to NAR members including discounted rates on financial consultations, access to virtual advisors and an automated investing platform. This is a new member benefit, so take advantage of it!
Just like in the real estate world, the financial and investment sector also has its abbreviations; IRA, 401(k), Roth IRA, Simple IRA and SEP IRA. I encourage you to take some time and research each of these different retirement options and see what works best for you, your career and your retirement dreams.
Talk To The Experts
Setting up an appointment with a financial advisor or even a conversation with a seasoned agent or your broker to glean insight is a great place to start!
Practice What You Preach
Make the most of your retirement with your real estate knowledge. Speaking with Jennifer Welch, owner/broker of Amazing Realty, her retirement plan is centered around making investments in real estate. Use your skills and knowledge to build an unconventional retirement plan that may yield more financial growth income than a traditional approach to retirement planning.
I hope you feel inspired, motivated and encouraged to explore your retirement options and plan for your financial future!