Mainly directed at the self employed, but all input welcome.
We’re LLC ‘s’ corp, and I started looking into a SEP. We’re a partnership, and I am paid about $25k on W2 from ‘the business’ – I’m going to run this past our CPA but am pretty sure we can contribute to this vehicle.
Goal is to exceed the $5-6 k limit each in the current 401k/ROTH plans we have, which are split – one third of the limit to ROTH, 1 third to 401k. Each – that is.
I’d be happier with about $12k total – $6k SEP, $4,500 401K, $1,500 Roth.
We left ODFL with $140k odd in each, in 2015, and didn’t contribute anything until 2021, after 8 years owner operator, with Gretchen not working, balances are at about $180k 401K, and $8k Roth (Again – figures are the same for both her and I).
Last year as we all know was disastrous for retirement accounts, and had me wondering if buying 10-50 acre agricultural/rural sections, and paying on a mortgage for them, would be better than sinking money into retirement plans where gains were not to be found at all. Land – undeveloped, seems to consistently gain in value, with little expense. Property taxes are reasonable, and land can be rented for pasture or crops enough to offset the taxes and a little on the mortgage interest.
House/vehicles/equipment is paid for – but you always need a roof overhead and tools to generate revenue, so I never view net worth of assets as anything productive for passive income. We had residential rentals but sold them due to a long term dismal outlook on returns vs. risk in our area. And having become tired of feeling like a welfare provider most times. That money just sits there being eroded by inflation, hence my interest in land purchase as a safer haven for loose cash.
I don’t really see retirement, unless I simply become too weak to work for whatever reason, so intend to do so as long as I can.
I played with the ssa.gov numbers, and it’s clear that doubling the current wages we pay SET on has minimal effect on projected SS income – about $150/month , and simply delaying withdrawal from the program (if it still exists 20 years from now) generates a far higher monthly number.
Just wondered what everyone else in a somewhat similar situation, either now or in the past – has elected to do for savings/retirement.
P.S. – Just watched that Bernie Madhoff documentary, and yeah – not interested in anything like that. You can keep your cryptocurrency too.
