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i want to know if people who do freelance as a full time job, do they think about retirement? How do they retire? Is there any good information that will help in the future?
If you're working full time online, and you earn something similar to an "average salary", I'd go with what angie mentioned above. If you on the other hand are making way more than that, I'd just go with a savings account and put 25% or so of my earnings each month onto that savings account. That will obviously grow a bit because of interest rate, but 25% of your monthly income would seriously be piling up like crazy. Personally, I've spent all my savings because of various investments. Both bad and good. However, my main goal is to save 10% of my earnings each month onto a separate bank account, which I'll be using when I'm older. Another 15% of my monthly earnings are sent to my "regular" savings account.. Which happens to become empty every now and then due to some thrilling activities or fun parties etc. At least, the goal is to have it all set like that. Sending 10% of my monthly earnings onto one account, 15% to another one.. And just keep myself alive and kicking with the remaining 75%.. And do all the necessary things like paying rent etc.
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One thing you can do is set aside each month for retirement. There are many different plans that you can put this money into. I would suggest talking to a banker to plan for this, as they will be able to tell you about different rates they have for different things ,such as an IRA.
The main disadvantage with freelancing is that you don’t have a company to subscribe you to a workplace pension plan meaning you won’t get pension payments when you retire. However, there are personal pension plans that you can subscribe to which is theoretically the same as a workplace pension. An alternative method is to create a savings account and put money into it every month and grow it until you retire. There are some disadvantages to this method. For example, you will be tempted to use the money if you have access to it. A decent solution to this is to put it into a fixed savings account which doesn’t allow withdraws so you will not be tempted to use the money and it can be saved for retirement.
Yes that is one disadvantage of working as a freelancer. However there is a way around it as you can simply arrange for a private retirement plan. There are many insurance companies that offer such plans. It is always important to save up some money as you never know what may happen, and this becomes increasingly important for when you plan to retire. If you like you can simply decide what percentage you should save every month so as to have a decent sum saved up for when you retire. I would recommend placing them in a fixed term deposit instead of a savings account so as to get more interest on them, and also to avoid the temptation of withdrawing money from them. Fixed term deposit accounts help you to be more responsible with your money. Obviously you would need to take into account how long you will be closing them for, and think of anything else that might crop up in the meantime that you might need the money for. So try to think in advance and consider your life on a long term basis. A number of fixed term deposits with different maturity dates could be a good idea for instance.
I have a 401(k) and personal mutual funds I invest in. I intend on using this for retirement and deposit in both monthly - any excess amount.
Hi very good question by sanfora as plan of retirement. It is really tuff decision as freelancer still and in this position. And it is uncertain still when I can make me free for remains life. Yes I have some plan for next 10 years and I do some physical establish business here. And I passed already 7 years as freelancer and If I take retirement after 10 years it may 17 years long for getting retirement and I think that day is right for me when I can get in my goal. I have some business plan and I have some DPS and FDR in bank and after 5 to 7 years it will give me some handsome amount for doing more establish business or make me retirement person.
Thanks by Ajlancer
As a freelancer sometimes I am bombard with work, I have to work 12-13 hours a day. And sometimes, I don't have any work for weeks. In some months, a freelancer will be earning twice or thrice the salary of a banker, however, in some months, he won't be generating enough money to pay for his bills and groceries. Thus, I believe in
"Make hay when there is sunshine."
When I am making hay during the sunshine, I will put this money into investment in bonds, gold and property. I don't believe in saving in cash.
I have no plans for retirement since I'm a part-time freelancer that derives joy in making that passive income from the internet. It is great that any freelancer starts as early as possible to invest their earning on freelancing on other things such as business ventures. The reason is that it will be easier to drop freelancing if there is something to fall back upon.
I am fortunate to be freelancing full time when I retire from my job in the bank. At least I am assured of a nest egg that can sustain my expenses and freelancing is just an augmentation of sorts for my finances. Some freelancers I know who are young don't even think of retirement maybe because it is in the far future. But come to think of it, how does a freelancer live after retirement? It should be a concern for a freelancer no matter the age.
I see the freelancing as my full-time job for now and I'm following all the rules carried out by regular jobs owners.I save pretty much every now and then.I'm looking at having an insurance scheme maybe life insurance and get a pension plan also.I'm really having a tight plan for my retirement.