5 Retirement Planning Options for Women Business Owners

Women entrepreneurs have several options when it comes to saving for retirement. A well-structured retirement plan should include a mix of personal and business-related savings strategies:
 

1. Solo 401(k): If you're a sole proprietor or a business owner with no employees (other than a spouse), a Solo 401(k) allows you to contribute as both the employer and employee, maximizing your retirement savings.
2. SEP IRA: This option allows business owners to contribute to their own retirement accounts, as well as their employees’, with higher contribution limits than traditional IRAs. It's simple to set up and has low administrative costs, making it ideal for small businesses.
3. SIMPLE IRA (Savings Incentive Match Plan for Employees): If you have employees, a SIMPLE IRA provides an easy way to offer retirement benefits while saving for your own future. The plan is less complex and costly than a traditional 401(k), but still allows for employer contributions.
4. Defined Benefit Plan: A defined benefit plan offers significant tax advantages for high-income business owners who want to contribute larger amounts to retirement savings. However, it comes with more administrative costs and complexity, so professional advice is essential.
5. Personal Investment Accounts: In addition to tax-advantaged retirement accounts, women business owners can invest in taxable brokerage accounts. These accounts offer flexibility, allowing you to access funds before retirement age, though they lack the tax benefits of retirement-specific accounts.

A Certified Financial Planner® can be a valuable partner, providing expert advice tailored to your specific needs, helping you navigate the complexities of retirement savings, and ensuring your business and personal financial goals are aligned. By prioritizing retirement planning and seeking professional guidance, women entrepreneurs can confidently build a prosperous future, both for themselves and their businesses.

Natasha Palmatier, CFP®, AAMS®. 

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. You should discuss any tax or legal matters with the appropriate professional. 

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Natasha Palmatier and not necessarily those of Raymond James. 

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Sunstone Wealth Management is not a registered broker/dealer and is independent of Raymond James Financial Services.