Helpful Retirement Options for People Who Work from Home

Being an Independent Contractor and working from home does not mean that you shouldn’t start thinking about saving for retirement and making those dreams of leisure a reality.

 It doesn’t matter if you are working from home as part of a well thought-out plan, retirement does not just happen, especially when you are on the self-employed road. And the thought of saving for retirement can be overwhelming and down right daunting as a work from home independent contractor, but it can be done and truth be told, it is not as tricky as it might sound.

Here are Four Saving Tips that should help you get started on that exciting road to retirement as a work from home worker.

When do I want to Retire?

It seems like an easy enough question, but there are some that prefer to find their freedom all at once. Would you like to retire when the nest is empty? Maybe you are married and would like to retire at the same time in life as your spouse? Since you are self-employed, your retirement age depends entirely on you- how much you save ahead of time and when you are ready to live off that savings will play the final factor in your decision making.

 How much money do I need to Retire?

How much to set aside for retirement is a question that can be tricky to answer and honestly, it depends on what kind of lifestyle you want when you are ready to leave the working world. You will probably no longer need to pay for the expenditures that come with young children, as you might be doing currently, but you might have travel plans in your retirement dreams, or maybe you want to eat outside of the home more often, or even enjoy some new hobbies that you have been putting off while you are still working . There are things to consider when looking at how much you will need, such as paying off bigger bills like mortgages and student loans. Maybe your living situation will change due to wanting to rent a home or condo with less upkeep, which will require more of a monthly expense than what is carved out in your current budget. It is recommended by many financial representatives that you save 10 to 15 percent of your income now, for the retirement phase of your life.

 If you are self-employed, saving a percentage is usually easier than a set amount every year. Your good and bad years should even out and this will ensure that you do not have to worry about meeting a specific dollar amount each year.

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