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  • 401K for self employed

    Do any of you self employed groomers have a 401K plan? If so, can you tell me a little about it...how it works, where I go to get one started, pros/cons etc etc.

    Thanks

  • #2
    you need a Roth IRA, check it out at your federal office or talk to you accountant.

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    • #3
      Check into getting a SEP IRA. It is for the self employed.

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      • #4
        All I can say is HAVE ONE, Lol!

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        • #5
          I have a SEP IRA. It allows you to deposit more annually than you can deposit in a regular IRA.

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          • #6
            I will look into it. How do you pay into them? Do I send them weekly or monthly checks, or do I send it in at the end of the year?

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            • #7
              Look into Nuveen Tax Free Municipal Bond Fund - $2,000 to start, totally tax free interest - its like getting 10% on your money tax free. You have to get it through a reputable broker, but its listed on NYSE and hardly ever goes down in value. Its a better way to go. You are investing in your State - almost every state has a Nuveen Fund. Money is used to build schools, prisons, state buildings, roads, etc. The only way you would lose the fund is if the State went bankrupt. So its pretty safe. JMO

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              • #8
                My accountant told me that this year I had to open a SEP IRA. I went to my regular bank and they opened one for me. Mine is like a CD and I can add to it when it comes up for renewal in 10 mos. There are others that pay more based on stocks/bonds. Check with Fidelity or any of the "big" banks that offer investments. Amounts to open vary from $250 to $2000. The thing about the SEP is that it saves you from paying as many taxes on your income if you're self employed.

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                • #9
                  Thanks for the replies. I did check into fidelity and they are sending me info on both the IRA and the 401K.
                  I am really illiterate when it comes to stocks/bonds/mutual funds..so I figure when I get all my info I will take it over to my dad and have him read it to me in English lol.

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                  • #10
                    Mutual funds etc

                    I have been taking a class at my church called the Total Money Makeover.
                    You can do a search for it online it's by Dave Ramsey. You can get his book or whatever else that gives you steps to becoming completely debt free and saving your money! He talks heavily about mutual funds and IRA's, difference in life insurance plans etc. I have learned if I put $20 a week to the side and invest in mutual funds at 12% I can retire quite nicely by the time I'm 65 if I don't make it to 65 my kids will have a nice inheritance anyways! LOL I am totally clueless to it as well but I know more now since taking this class, just wish I had known more about it 10-15 yrs ago because I would probably would have been able to retire a lot earlier and live very nice and enjoy later years!

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                    • #11
                      Also look into Vanguard.
                      Stress is nothing more than a socially acceptable form of mental illness.- Richard Carlson

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