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How to Set Up Your own 401k For Entrepreneurs



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hi my name is Erin Lynn style I'm a

polar explorer and motivational speaker

today I'm going to tell you how to set

up your own 401k as an entrepreneur and

self-employed person to save money for

your retirement

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so as an entrepreneur as a self-employed

person you have a very difficult

challenge ahead of you not only do you

get to pay self-employment tax which is

basically you're paying your full 15.5%

or whatever if Social Security you've

got to come up with your own health care

and with a supremely skyrocketing cost

of Obama care and all that after that

was put in like two or three years

whatever before Obama became president

and all that started to roll out people

are paying like a mortgage payment for

health insurance law I don't have any

money left what happens when you retire

yeah so you've been working as an

entrepreneur and yeah I'm doing all

these business deals and I'm selling

things online I got my eBay store and

I'm kind of making ends meet and this is

all good and you think you have that

energy and you've got that energy

forever no we all see we all have this

delusion work hey I'm gonna be able to

work till I'm 85 90 if you really think

you can get up and out of bed at 5:00

a.m. to go to work and keep that going

till you're 90

you got a delusion problem you're going

to need some sort of retirement vehicle

now don't stop the video but this is a

full disclosure I'm not a financial

adviser I cannot advise you on stocks

that is not legal SEC rules but I'm here

to tell you about one of the tools that

I have found that you can allows you to

set up your own 401k as a solo

entrepreneur how cool is that

now if you've ever worked for a company

that offered a 401k retirement

investment options you got you can three

through t rowe price through Vanguard

through Wells Fargo B there's tons of

options but eventually perhaps you

decided hey you know what I'm gonna

leave my company world the corporate

world none kind of go on on my own and

yeah you get started and it's exciting

and boom boom

five years past and how much money have

you put in there

zero five years have passed you're five

years closer to retirement and you've

put in that much money you can't get

those five years back to start saving it

was super easy at work because all they

did whoever they is they handed you a

packet said sir man if you would like to

sign up for the fro one K here's all the

info it's usually like this thick or

maybe they give you a PDF and nobody

reads fifty pages a yadi yadi on anymore

it just doesn't happen what happened to

went in the drawer the next time the

sign up came around oh you know you

talked to the spouse and maybe we should

do this because we're getting older

right start when you're 20 he's you

maybe get the paperwork out like oh

let's just check some boxes it just

comes out of the paycheck voila 401k

retirement savings role Wow check it out

we actually have a little bit of money

saved a little bit of money like 10

grand let me tell you you think wow I've

got a retirement ten grand that ain't

nothing folks ten grand though that was

something back like in the 60s where you

could buy a home for 17 grand 10 grand

whoo that's gone in months if you're

lucky so you decide okay I'm gonna quit

my job but I get this 401k now what am I

gonna do it's so easy not to think about

saving money for retirement now I'm a

motivational speaker I'm an author I

write books I'm a professional

adventurer and I'm doing all these

things I'll teammate writing books makes

money professional and venturing and

traveling spends money doing YouTube

channels spinned balance this is

something like that motivational speaker

tends to make money so so some good some

bad as a motivational speaker companies

hire me to have me tell them and inspire

them about my experiences and how it

relates to their business but as I'm

doing that I'm earning the money but I'm

burning it to pay my bills pay or and

carpe

in health insurance yeah yeah yeah all

this stuff but I've been very diligent

about saving when I was working for in

the corporate world but I have to admit

I totally fell off the horse in not

saving for my retirement as I've grown

and converted into an entrepreneur now

you folks in your 20s and 30s the

Millennials and Z jitters that they talk

about the Z chin hmm there you go the Z

Gen yeah let's say hey I'm gonna break

out I'm gonna work I'll save for

retirement later too lady that is a fail

that is the ultimate fail you don't want

to do that so I've searched around I had

a 401k set up through a lawyer in La

Jolla in San Diego California they set

up a thing into a pooled account so I've

got the ability to work under their

umbrella to invest money and this is

through I use Vanguard comm again I'm

not recommending them as an investment

vehicle I'm only telling you what I have

done this is not a recommendation do not

put a nasty gram do not SiC the SEC on

me I'm just telling you what I've done

your results may vary but Vanguard or

whoever you use I have that lawyer who

set this up so I can put money under the

401 K structure instead of an IRA Roth

IRA and use that and build my retirement

savings however I just discovered and I

don't know how long it's been out that

Vanguard actually author offers they

call it an i fro 1k an individual 401 K

you yourself as an entrepreneur can now

set up your own personal 401k to pay

your tax or now pay yourself sorry pay

yourself in the future when your old

manner include

pre-tax which means you can pay yourself

not just out of your income but as an

expense which takes that money off the

top reduces your tax burden directly not

as a deduction but a direct deduction on

your taxes now again there's a bunch of

complex laws you got to check into this

but contact whoever you want to do but

look up individual 401ks apparently

they've just started to come on to the

market and with a huge explosion like of

people who are entrepreneurs these

investment companies Vanguard being the

granddaddy T rowe Price is great New

York Life and there's tons they've begun

creating the ability for you to create

your own 401 K where you can put all the

money in with all the tax advantages all

the financial advantages yes I know you

don't have as much money to spend now

but one day you will be too old and

decrepit to earn money and if you don't

put the money away and see your you

don't put the money away so when you're

old and decrepit you have money so you

can live off of so you're not living off

on the street and fighting the cats for

their used cat food you're gonna want

this money and one of the great

investment vehicles and this is one of

the things that I'm really looking at is

that individual 401 K to set it up now

it does have some disadvantages like you

can't take a loan out against it there's

some funds you can't go into if you

develop or develop if you decide to have

employees you can't do that I mean

there's some complex laws but if you

contact these companies I'll put a link

to Vanguard below again they are not my

that I'm not prescribing them I am NOT

suggesting them I'm just putting an

informational link below so you can

decide I'm not advising you on what to

do get the point but you now have the

ability to set up

own 401k so you can take the money off

the top pay yourself pre-tax and then

when you're old and decrepit you don't

make the money you can bring that money

out but your incomes lower so your taxes

lower ah it's like a double Kachina fist

pump double whammy you get your money

have your cake you eat it - you just got

to wait - you're 15 minute and a half I

know that seems like it's forever and

far away but believe me I remember my

dad told me when he hit 60 like son

it's not that far away he'll you wake up

tomorrow I remember in my 20s I said you

know I'm gonna wake up tomorrow and I'm

gonna be 35 and one day I woke up and I

was 35 and like man I haven't gone to

Antarctica yet I busted a move two years

later or two and a half years later I

was in Antarctica so this saving for

retirement thing I know it's old boring

it's not interesting but you have the

ability now to set up your own micro

corporation a la you and only your

spouse or however the law works and you

set up your own 401k and you as an

entrepreneur can now save money in those

awesome retirement vehicles save for

your future and save your future self

from your very spending overspending

self now that is how you save money with

these new individual 401ks highly

recommended but not recommending to

violate the laws yeah absolutely check

out the links below do your own reading

talk to your financial advisor don't

talk to your dog for financial advice

and see if it works for you awesome

options out there for entrepreneurs

speakers like myself or whatever you do

nowadays my name is Erin Lynn stout I'm

a polar explorer and motivational

speaker please like and comment on the

video subscribe below to support the

channel also support me through venmo

PayPal and patreon thank you very much

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