Self-Employment and Retirement

Last week I was interviewed by a journalist for an article for a forthcoming fall issue of  The Writer. The topic was saving for retirement when you're a self-employed writer, something I've written a bit about in my book Creating A Freelance Career   

In the book I explain that when you are self-employed you are considered both the employee and the employer so you can deposit into an I-401K or a Solo 401K both the employee and the employer's contribution towards your retirement. In 2019, the employee contribution can be $19,000 and the employer contribution can be $37,000 for a maximum contribution of $56,000. (See here for more information.) 

Plus, depending on your income levels, you could also contribute to a traditional or a Roth IRA (also on page 138 of Creating A Freelance Career). And as I write there, "While, these numbers may seem overwhelming as you're starting your freelance career, when it comes to saving for a rainy day and for retirement, it's important to get into the habit. Even earmarking a small amount to weekly or monthly go into both a savings account and a retirement account will accumulate, providing a cushion and some benefits when you're older and grayer." 

Which reminds me of the final question the journalist asked me: When do you plan to retire? I admitted that I've been writing for publication since I was 12 years old and I can't see myself ever stopping writing articles and books. I think it is an activity that defies age and also helps keep me feeling young. 

And I believe many of us that are following passion projects and creating businesses that help us burst with life feel the same way. Why stop doing something that invigorates you and that you feel contributes positively to the world. 

What are your thoughts? #retirement #I401K #passion projects #savings