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How do you get a 401k match from a private company? If all contractors are making 20% above a FTE, that's fine, but that's a decent chunk of change if you're h
by FLUX-YOU 9y ago
How do you get a 401k match from a private company?
If all contractors are making 20% above a FTE, that's fine, but that's a decent chunk of change if you're high salary.
- neogodless 9y agoWhile you don't get a 401k match as a freelancer or contractor, ideally you can get hourly rates to make up some of the difference. The rest can come from registering as a company, setting up a solo 401(k) - in the U.S. anyway - and then putting up to ~$54,000 of your income into a retirement fund pre-tax. That's a pretty significant potential tax savings.
- virmundi 9y agoThe other thing to think about is flexibility in not being in an employer backed 401k. When I was in one the best average return was 4%. Independently I can get 15% through etfs that track the S&P. I can also get 30-50% playing in riskier tens like oil or commodities. While some argue against that, at least I now have the agency to decide.
- trevyn 9y agoVanguard seems to be a pretty popular option among employers these days, and they have nice low-fee S&P funds.