How to save for retirement without a 401(k) | HartfordBusiness.com: When it comes to retirement saving, a 401(k) is often considered the gold standard.
A 401(k) certainly makes saving easier. The money is taken directly from your paycheck, before you get a chance to spend it elsewhere. Making contributions lowers your taxes, and some employers even match the amount you save.
But a third of private sector employees don't have access to a workplace retirement plan. Plus, about 15 million Americans are self-employed.
The good news is that there are other accounts you can open yourself that offer similar benefits. For some self-employed people, the benefits can be even better than a traditional 401(k) plan's.
"Most self-employed people totally forget to set these up and don't fund them. So they end up paying too much in tax and not having enough saved for retirement," said Mari Adam, a certified financial planner and president of Adam Financial Associates.