Most Popular Retirement Strategies for the Self-Employed

With high unemployment rates nearly doubling since 2008, the rise of solo-preneurs has also risen more than 6.4 percent with one in ten unemployed people starting their own businesses, according to a USA Today article published Sept. 8, 2009.

More and more baby boomers are electing to work for themselves with the largest group of all being men 55 to 64 years old, according to Ellen Schultz of the Wall Street Journal.

Schultz says 401(k)s and SEP-IRAs are the best choices for entrepreneurs to save for their retirement. Both retirement tools allow self-employed persons to save income tax-free until withdrawal.

Being able to contribute up to 20 percent of your self-employment earnings – or 25 percent, if your business is incorporated[1], is a huge advantage particular if tax rates rise in the upcoming years. Read more ways to build you retirement nest egg here.