We all want to leave the office and our bosses behind one day and retire.  Then we will be the masters of our own destiny for once.  What about self-employed people?  One could argue that they are already the master of their destiny.  However, even a self-made person wants to take time to relax and enjoy the good life.  Here are some tips for them to enjoy the full benefits of retirement.

1.  Make a plan.  You have experience with creating plans.  A business plan was needed to get you up and running on your own.  This plan is actually easier.  What do you want to do after you retire?  When do you want to retire?  A person who works for themselves doesn’t have to retire at sixty-five if they want to keep working.  Whenever they desire to pack it in, a solid plan now ensures that the money needed to do so is there.

2.  Set up a retirement plan.  When you work for yourself, you are the employer.  The only person to provide retirement benefits is you.  A Keogh plan is the retirement plan of choice for self-employed individuals.  It allows you to put away tax-deferred savings for retirement.  There are two types of Keogh plans:  defined contribution and defined benefit. 

3.  Contribute the maximum amount to your retirement plan.  Read the fine print.  Depending on the type of Keogh plan you have, the contribution may have a limit per calendar year.  If you can afford it, choose a plan that sets the higher limit on contributions.

4.  Open an IRA account.  You can never have too many retirement accounts.  Your local bank or credit union can give you advice on how to open an IRA account with them.  Choose between a traditional plan and a Roth IRA.  Many people opt for a Roth because the yearly contribution amount is higher. 

5.  Choose a financial planner.  In a company, the financial decisions are made by the company on behalf of their employees.  They consult financial people when looking to offer options for benefits and retirement to their employees.  You have to do this for yourself.  A financial planner can suggest ways to invest the money you receive from your business to secure your financial future.  A diversified portfolio is best to get a sampling of low, medium, and high risk investments with the maximum return.

6.  Talk with your spouse.  You may own the business, but your spouse may have a nine-to-five job.  They also have a retirement plan from their employer.  He or she will want to take advantage of the plan.  Enroll and have as much money funneled into it as possible in order to increase the money available at retirement.

Retirement is a goal for everyone.  Self-employed people can be just as secure in their retirement portfolio as those who work for someone else.