Self-employed retirement plans Pembroke Pines, FL. The freedom of owning your own business in Pembroke Pines, FL is one of the best aspects of being self-employed. Even so, this freedom often comes with certain challenges, especially regarding retirement savings, because you don't have access to a workplace retirement plan. Only 13% of self-employed individuals have a workplace retirement plan, but many could benefit from looking into other possibilities. In addition to enjoying a more secure retirement, partnering with a financial advisor in Pembroke Pines, FL to establish your self-employed retirement plan offers significant tax advantages that enable both you and your business to thrive.
Few Pembroke Pines, FL investment consulting and retirement planning firms are as attuned to the requirements of entrepreneurs quite like Correct Capital. The father of our founder was a small business owner himself (check out our story here), and we have a rich history of helping businesses with their retirement planning needs. We understand that your goals for your business and retirement extend well past basic numbers, and we are dedicated to provide customized solutions aligned with your vision. Keep reading to learn more about your self-employed retirement plan options in Pembroke Pines, FL, or call Correct Capital at 877-930-401k or contact us online to consult with a self-employed financial advisor in Pembroke Pines, FL today.
Why Pembroke Pines, FL Self-Employed Individuals Should Have a Retirement Plan
Retirement plans for self-employed individuals not only prepare you for the future, they also provide tangible benefits today. From flexible contributions to significant tax savings, working with a financial advisor in Pembroke Pines, FL enables you to design your retirement plan to align with your specific needs.
Flexibility That Fits Your Income
If your income changes over time, a plan like a SEP IRA or Solo 401(k) provides the option to modify how much you save:
- Customizable Contributions: Save extra during successful years and reduce savings when your earnings dip, ensuring your plan aligns with your cash flow.
- Roth Options: Opting for a Roth Solo 401(k) lets you settle taxes at the time of contribution, allowing you to withdraw tax-free later—a smart decision if you expect your tax rate to be higher in the future.
Save Money on Taxes
Retirement plans for self-employed individuals provide significant tax benefits:
- Tax-Deductible Contributions: Contributions to a SEP IRA shrink your tax liability, allowing you to keep more of your income.
- Tax-Deferred Growth: Your savings grow untaxed until withdrawn, giving your money more time to accumulate.
- State-Specific Incentives: In some states, you might access extra tax breaks as a self-employed individual. These local incentives make these plans even more beneficial.
- Retirement Savings Contributions Credit (Saver’s Credit): Those who meet the requirements can apply for a credit of up to 50% of the first $2,000 put into a retirement plan, helping to lower your tax bill even more.
Protect Your Savings With Smart Investments
Building a secure retirement requires more than how much you save—it’s also about how you invest:
- Diversified Portfolios: Spreading your investments across a mix of asset classes like stocks and bonds serves to mitigate financial risk while helping to grow your savings.
- Emergency Back-Up: Supplementing your retirement savings with a dedicated business safety net prevents you from using your retirement funds during financial hardships and risking extra costs.
Plan for the Future of Your Pembroke Pines, FL Business
Retirement planning can assist you think through what’s next with your Pembroke Pines, FL business:
- Selling Your Business: If you’re planning to sell, retirement accounts like SEP IRAs and Solo 401(k)s stay in your name and don’t transfer with the business. These accounts offer the financial stability you’ll need later on. Remember that while selling a business often leads to a capital gain, deposits into these plans are restricted by contribution limits (e.g., a maximum of $7,000 for IRAs or a maximum of $70,000 for Solo 401(k)s, with catch-up contributions, based on plan compensation).
- Minimizing Taxes: Making the most of retirement savings minimizes the taxes you are required to pay when you transfer your business.
- Succession Planning: If you’re passing the business on, your retirement savings ensure a stable foundation as you make this shift. You can also work with a financial advisor experienced in both succession and retirement strategies to minimize tax burdens associated with the transaction.
With the right retirement plan, you gain control over your financial future, lower your tax bill, and build a secure foundation for both your retirement and your business goals.
Why Start a Self-Employed Retirement Plan in Pembroke Pines, FL Now?
Time remains one of the most important factors when it comes to saving for retirement. Beginning sooner rather than later not only lets you accumulate a bigger financial cushion but also minimizes the financial burden of playing catch-up as you get older. The following are reasons why it is beneficial to start now:
The Cost of Waiting
Delaying your retirement savings may cause a significant impact on the savings you’ll have when you stop working. The biggest reason is compound interest—the powerful process where your investments grow, and those returns, subsequently, earn even more returns. The longer your money has to grow, the larger the impact of this compounding process.
Example: Two individuals, Alex and Taylor are both self-employed individuals. Both of them want to save $500,000 for retirement by age 65:
- Alex begins contributing $5,000 annually at age 30.
- Taylor postpones starting contributions to age 40 but contributes $7,500 annually to bridge the gap.
By age 65, assuming 7% annual return:
- Alex puts in $180,000 and achieves a total of $691,184.39*.
- Taylor contributes $195,500 but accumulates just $474,367.78*.
How Early Contributions Grow
Even modest contributions invested steadily can lead to impressive growth. Here’s a simple scenario showing the power of compounding:
- Starting at age 25: By investing $200 per month in a retirement plan with an expected yearly growth rate of 7%, you’ll end up with $497,303.29* by age 65.
- Starting at age 35: Investing the same $200 per month leaves you with only $235,412.97* by age 65—a shortfall of over $260,000, simply due to a 10-year delay.
Saving early, the less effort required each year to achieve your retirement goals.
*The numbers shown in this scenario represent estimates calculated using NerdWallet’s Compound Interest Calculator, based on a 7% annual return. The contributions were calculated by multiplying the annual deposit amount by the total number of years contributions were made. This information is meant to provide general guidance and are not a promise of future results. Outcomes may change based on variables including market conditions, fees, and personal factors. Always consult a financial advisor for guidance tailored to your needs.
Take Control of Your Financial Future
As a self-employed person in Pembroke Pines, FL, it can be tempting to focus more on reinvesting in your business instead of saving for retirement. That said, initiating a plan now enables you to:
- Take advantage of tax-deferred growth or tax-free withdrawals down the road.
- Benefit from contribution flexibility that adapt to your cash flow.
- Establish a safety net that ensures stability, no matter how your business evolves.
The sooner you start, the less you’ll need to worry about making up for lost time later in life. Building your retirement savings today means taking control of your financial future and creating for yourself the ability to focus on your goals—both for your future retirement and your Pembroke Pines, FL business.
Types of Self-Employed Retirement Plans
A variety of retirement savings options designed for those working for themselves in Pembroke Pines, FL, each offering its own benefits and trade-offs. A financial advisor is available to help you evaluate the advantages and disadvantages of each choice and determine the one most suitable for your unique situation. Typically, your self-employed retirement plan options in Pembroke Pines, FL include:
Traditional or Roth IRA
Plan Overview: Individual Retirement Accounts (IRAs), as explained here, represent financial tools for retirement that include key tax perks. In a standard IRA, contributions are typically tax-deductible, and returns grow free of current taxes, but money taken out during retirement are subject to income tax. In contrast, with Roth IRAs, you contribute from post-tax earnings, but qualified withdrawals in retirement, including earnings, are tax-free. In both types of accounts, withdrawals are penalty-free provided you are at least 59½.
Eligibility: Unlike plans linked to your job, both traditional and Roth IRAs are available to anyone with an earned income.
Contribution Limits: For 2025, annual contribution limits for IRAs are set at $7,000, or $8,000 if you qualify for catch-up contributions.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: The Simplified Employee Pension IRA offers a way to save for retirement that permits entrepreneurs to contribute a percentage of their net earnings. Contributions are strictly employer contributions an employer, so, as a sole proprietor, you (the employee) are limited to contributions from the employer role more than the 25% you (the employer) already contributed. If you have employees, it's required to contribute the same amount for them as you do for yourself. You have the flexibility to contribute a fixed dollar figure or a percentage of wages to employee accounts. A SEP IRA works well for companies with periods of inconsistent earnings. Compared to other retirement options, SEP IRAs lack costly startup or administrative fees.
SEPs operate like conventional IRAs, where contributions are made with pre-tax money and retirement distributions are taxable.
Eligibility: Employers of any type, including self-employed individuals can open a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are capped at the lower of:
- 25% of compensation, or
- $70,000 for 2025
As a self-employed person, the allowable contribution is based on a special calculation.
Solo 401(k)
Plan Overview: Solo 401(k)s, also called an Individual 401(k) or one-participant 401(k) plan, is a retirement savings plan designed for businesses with no employees or when the sole employee is your spouse. This type of plan are similar to standard 401(k) plans, and let you make contributions as both an employee or an employer with pre-tax money. This allows for more savings compared to SEPs or IRAs; however, the additional opportunities may be offset by more limited investment options. With this type of plan, you can make either traditional or Roth deferrals, which offer the same tax benefits as their IRA contribution counterparts.
Eligibility: This plan is exclusively for business owners and their spouses can set up and contribute to a solo 401(k).
Contribution Limits: If you are self-employed with a solo 401(k) plan, you have the ability to make two types of contributions:
- Employee contributions of up to 100% of your self-employment income, up to the annual contribution limit. In 2025, those limits are $23,500, or $31,000 if you're over 50, or $34,750 if you attain age 60-63 in 2025.
- Profit-sharing contributions (as an employer) are limited to 25% of your net self-employment income, which is calculated as net profits less half of your self-employment tax and the elective deferrals you made.
Total contributions are capped at $70,000, or $77,500 for individuals aged 50+ (as of 2025), $81,250 for those aged 60-63 in 2025.
Individual Defined Benefit Plan
Plan Overview: Defined benefit plans represents a type of retirement plan that provides a fixed, predetermined benefit to entrepreneurs upon retirement. As opposed to defined contribution plans, a defined benefit plan doesn't fluctuate based on investment returns, but enables participants to determine what they'll receive in retirement. This plan is best suited for wealthier self-employed individuals who are focused on saving a significant sum for retirement and can commit to making sizeable contributions. Contributions are tax deferred, and withdrawals are taxed as income in retirement.
Eligibility: Self-employed professionals running an owner-only business or with a small staff of under five may establish an individual defined benefit plan, but it's typically recommended for people above age 50 who earn at least $250,000 a year. Typically, good candidates for defined benefit plans include:
- Partners or owners who want to invest more than $70,000 (or $77,500 for those aged 50+)
- Companies already contributing 3-4% with plans to contribute more
- Companies that have demonstrated consistent profit patterns
- Entrepreneurs over age 40 who wish to accelerate savings or boost savings within a short timeframe
Contribution Limits: The contribution limit must be determined by an actuary based on your earnings, age, and retirement objectives. Limits on contributions are adjusted each year.
The Importance of a Financial Advisor in Pembroke Pines, FL for Your Self-Employed Retirement Plan
A financial advisor in Pembroke Pines, FL focused on self-employed retirement strategies is an essential partner for entrepreneurs. They have the expertise to help navigate the complexities of retirement planning and craft a personalized approach that aligns with your goals. A financial advisor in Pembroke Pines, FL will assess where you stand financially, identify your risk preferences, and help you in selecting the best options about saving and investing for retirement. Included in what we do for you includes:
- Help you choose a plan that suits your unique requirements
- Customize the plan to fit you personally even further
- Adopt a written plan in accordance with IRS guidelines
- Organize a trust plan to manage your assets
- Help you understand the plan's terms
- Review and modify your plan when necessary
- Deliver continuous support and financial insights throughout your retirement planning process
- Increase your retirement income by maximizing your social security benefits
Self-Employed Retirement Plans in Pembroke Pines, FL: Correct Capital's Process
Pembroke Pines, FL business owners who aren’t equipped with the time or understanding to handle their self-employed retirement plan independently often feel overwhelmed as they look at their options. At Correct Capital, our Pembroke Pines, FL financial advisors manage the lion's share of your savings plan setup for you, to help make meeting your financial objectives as easy as possible for you. We are here to assist you in setting up your self-employed retirement plan in four simple steps:
- Schedule a Call: In just 20 minutes, a member of our advisor team will assess if we're suited to your needs for you and your business. This initial call allows us to learn about your needs with no pressure or extensive time commitment on your part.
- Gather Information: Once we mutually decide to continue, we'll gather information, including your employee count, your existing financial picture, and your retirement goals. This enables us to craft a personalized strategy that aligns with your goals.
- Review Your Plan: Once we've developed a plan using the information you provide, we'll sit down with you and go over your plan in detail to help you fully grasp it and understand how it best correlates to your needs.
- Implementation and Monitoring: Once we've agreed on your plan, we'll set everything up so you can begin contributing. As time goes on, we'll have regular meetings and monitor your plan to ensure it stays suited to your needs.
Our Pembroke Pines, FL financial advisors and retirement plan consultants act as fiduciary advisors, who are obligated to they are legally and ethically bound to prioritize your needs above all else.
Other financial advisory services we offer in Pembroke Pines, FL include:
- Financial Planning for Business Owners
- Comprehensive Financial Planning
- Retirement Income Planning
- Investment Planning
- Retirement Financial Planning
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
Call Correct Capital for Your Self-Employed Retirement Plan in Pembroke Pines, FL
To you, your business is more than "just a business", and your Pembroke Pines, FL financial advisors need to offer more than basic financial recommendations. At Correct Capital, we take the time to get to know our clients and their businesses to provide customized self-employed retirement plans. All our clients in Pembroke Pines, FL benefit from our I.O.U. promise: everything we recommend will be independent, objective, and unbiased. To get started on your self-employment retirement plan, reach out to Correct Capital at 877-930-401k or contact us online.
