No. of Recommendations: 4
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.

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