what could anyone advise regarding pension plans?? i am 33 self employed cabby.not knowing what to do for my future,hearing all the negatives about pension plans falling through??
2006-06-21 10:30:07 · 3 answers · asked by shoopy213@yahoo.co.uk 2 in Business & Finance ➔ Personal Finance
i am in uk
2006-06-21 18:43:50 · update #1
Open a SEP-IRA or Roth IRA. Depending on what you invest in, it can be very safe - and it's owned by YOU. Be careful about costs. WWW.Vanguard.com
2006-06-21 10:32:40 · answer #1 · answered by Cão Bravo 3 · 0⤊ 1⤋
I think the only option is to take out a personal pension plan. You probably couldn't save enough any other way. A financial adviser would advise you on how much you should be paying to get a decent pension. I can only advise that the sooner you start the better. Look for information on stakeholder pensions, I think you get a better tax deal.
If its any consolation, most of the pension schemes that have collapsed have been company schemes where the business has gone bust or the company has failed to keep its side of the deal and has not kept up their contributions.
2006-06-21 17:38:37 · answer #2 · answered by migelito 5 · 0⤊ 0⤋
First answer is a good one. SEP-IRA/Roth are best for Self-employed. The absolute hardest part of a self-employed person trying to get started is the discipline to take that first 10% of any money you make each day and put it into a savings plan or Roth. Buy into an Index following Mutual fund. Find a brokerage that has very low costs, both for buying and selling commissions, and annual fees. The are lots of web pages that can help you. Start out at www.fool.com , the webpage for the Motley Fool Financial advisors. check out the tab in the upper right called Fool School for a tutorial abbout investing. You'll have to give them your e-mail address but it's a free website.
2006-06-21 17:42:07 · answer #3 · answered by Fuggetaboutit_1 5 · 0⤊ 0⤋
You should post a detail of what country you live in, as the options will be very, very different from one country to the next. For example, in the US, people open various types of IRA's and 401 accounts but in the UK, it's called a pension, and they all work differently.
2006-06-21 21:51:17 · answer #4 · answered by dcgirl 7 · 0⤊ 0⤋
It would be very expensive to set up your own pension plan. Talk with a financial planner about setting up a Roth 401(k) or a SEP IRA. Good luck
2006-06-21 17:41:03 · answer #5 · answered by ps2754 5 · 0⤊ 0⤋