I am in my mid 20's and self employeed. I would like to start investing primarily for later in life.As someone who is self-employed, your first priority should be tax obligations, and your second priority should be a contingency fund for those times when the checks don't come in as planned. I would say that the contingency fund should be a minimum of 6 months expenses.Assuming you have these covered, then investing primarily for later in life is appropriate.It seems like a Roth IRA may be a good option b/c I'm young but is there a better option (I hear there are 401ks for the self employeed)...or is a traditional better?As far as what type of account, it depends, in part, how much you are planning on putting away. At your age, a Traditional or Roth IRA allows you contribute up to $5,000 a year. A 'solo' or 'single' 401(k) allows you to put away singnificantly more money than an IRA - up to $16,500 (assuming you have at least that much in compensation) for the employee contrributions, and up to a total of $49,000 for the combined employer & employee contribution. The employer contribution for 401(k) is also constrained by your net employment income. There are other potential plans for the self-employed, such as SEP and SIMPLE. You should be consulting your tax adviser to see which plan(s) fit your sitation best.I basically just want a balanced investing strategy that I don't have to worry about till later.For 'set it and forget it' type investing, you may want to look at index funds or index ETFs, age targeted funds, or balanced funds. I would suggest places like Vanguard and Fidelity that charge relatively low fees.AJ
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