Isn’t everyone aiming toward some form of retirement? For the self-employed, the future might feel a little bit more uncertain. Does having no employer mean having no security? Not necessarily- but independent contractors have to plan (more) for the future.
The economy is uncertain right now, and the future always is. Self-employed professionals who independently find their own jobs will not necessarily be provided a retirement plan by any employer or government. Is there retirement after self-employment? Yes- but the professionals, as was the case with their careers, must create this plan for themselves.
Self Employment and Social Security
The U.S. government provides, at least at present, social security for senior citizens (persons aged sixty-five or older). This is put in place to provide at least some funds for professionals after they stop being actively employed. Because everyone who works pays income taxes and therefore contributes to the social security fund, everyone is eligible for some form of social security – for as long as that institution lasts.
The future of social security, much like the future of self-employment, remains something of a mystery. Will social security be available tomorrow for the independent contractors of today? No one knows – and that’s why it’s important to have other retirement plans in place.
Other Government-Based Retirement Plans for Self Employment
Is there retirement after self-employment? There is if it’s created, through plans and investments that will help to ensure a secure future. Many federal governments provide 401k and other types of retirement plans for business owners, as many federal governments legally require these plans be in place. The US government provides plans and advice for small business owners that could help independent contractors prepare for their future as well.
Planning for the Future
Even independent contractors might want to slow down and stop work at some point in their careers, and that means it’s necessary to have retirement plans for life after self-employment. What is retirement? It’s the cessation of full-time employment. How does a self-employed professional make retirement happen? Well, just find some other way to get money – or, have money saved up in place of steady income.
Planning for the future doesn’t just begin and end with retirement plans. Self-employed professionals should have health and life insurance plans in place as well – plans which, at present, must be purchased as individual policies. Retirement plans for independent contractors may come in the form of 401k plans, savings accounts, investment accounts or other types of interest-building bank accounts that will help to provide some income in the absence of full-time employment.
Is Self Employment Secure
It’s difficult for self-employed professionals to plan ahead or move ahead unless they know the details of work-at-home finances. Is self-employment secure enough for those who want to retire, send kids to college and enjoy a high quality of life?
These questions often provoke enough fear to turn many people away from self-employment opportunities and work-at-home jobs. Is self-employment secure? It’s a big question that seems to have a lot of different answers. Know what to expect; know the details of work-at-home finances.
Work at Home Finances
Rarely do self-employed professionals receive traditional paychecks, documented money that has taxes taken out for governmental purposes. This means those who work at home must file their income, pay taxes at the end of the year and handle many other financial concerns all alone. This means extra work for those who work at home – and sometimes, all those little financial details can create a very complicated picture.
Professionals who work on their own don’t have traditional employers who offer 401k or retirement plans, much less pay stubs. This means those who work at home have to find different ways to prove their annual income, must pay more to plan for the future and must work harder to meet future goals.
This means showing yearly tax returns instead of pay stubs to prove income when seeking approval for loans or major purchases. This means buying health insurance individually and paying out-of-pocket, buying bonds or forming accounts to create security in the future. It can mean a lot of hoop-jumping, a lot of proving oneself. Work at home finances may not always be steady, payments may not always arrive on time, and rates and payments may change over time.
It can mean instability, sometimes. So…is self-employment secure.
Is Self Employment Secure
It may take a little extra work to create a stable financial picture for the future of self-employment, and sometimes employers and clients don’t come through when they should, but this doesn’t mean work-at-home opportunities can’t lead to a happy future. Self-employed professionals may have to prove themselves through tax papers and employer references, may have to take extra time to find interest-building accounts and affordable insurance policies, but that doesn’t mean self-employment isn’t secure.
The details of work-at-home finances can be complex (claiming taxes at the year’s end can be a real adventure), but they are not unlike the finances of employer-based jobs in the working world. Create accounts that will accrue money for the future, buy insurance to protect against unforeseen expenses and keep records of payments received. When the paperwork is in order, the details of work-at-home finances shouldn’t be too difficult to figure out.
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