 |
Best savings account for self-employed individual?
Best savings account for self-employed individual?
I am looking to open a savings account this year, and was wondering what the best starter account for my budget would be. I am very frugal and save about half of my gross income. So, here's the stats: I'm 26, self-employed as a Pilates teacher in NYC, live with my boyfriend, and make $12,000 gross income every year. I'm also a full-time student, and have an expected contribution of $400 per year.
Should I stick with my current (basic) savings account, or look into a CD? I want to start a retirement account ASAP, but have been recommended by several family members to stick with a savings account until I have a higher income.
Thanks for your time.
Answers:
ebs2hott4u@aim.com: uh...Bank Of America ?
2008-02-02 19:01:42
2008-02-02 19:01:42
Beaker: You should check out an online savings account like emigrantdirect.com or ingdirect.com. These accounts pay about as much as a CD and you can withdraw your money anytime without a penalty. There are also no minimum balances.
2008-02-02 19:04:38
2008-02-02 19:04:38
jl: qutie frankly,
Paypal.com is paying 4.3% on its money market account.
That's about the best interest I've seen in any savings account or CD right now, and the money is liquid.
2008-02-02 19:08:40
Paypal.com is paying 4.3% on its money market account.
That's about the best interest I've seen in any savings account or CD right now, and the money is liquid.
2008-02-02 19:08:40
jdm: You can check with your employer and see if they offer a 401k plan, this is a retirement account where they take money from your pay check everytime you get paid and set it aside for your retirement, thats the best way to do it, If that is not offered then you can do an IRA, bank offer CD, IRA accounts and mutal fund company do as well. The max contribution to an IRA is $4,000 a year, so set aside about $333.33 a month and at the end of the year you can open and IRA, if you do a regular IRA, you can deduct the amount so you save on your taxes. Great deal for a young person. Speak to a financial advisor, they can help
2008-02-02 19:21:06
2008-02-02 19:21:06
Chosen Answer
souffledunange: I'd say to look into the emigrantdirect.com or ingdirect.com sites for savings accounts (because it's good to have some money readily available in case of emergency) in addition to a retirement account such as a 401(k) or IRA. Since you're self-employed, you have the option of setting up a solo 401(k). With IRAs, you have a couple of options to choose from, i.e. SIMPLE IRA, SEP IRA, traditional, roth.
Of course, you should analyze the pros and cons of all of these. Consult a financial planner/tax professional if you have questions. Shop around - it's your money at stake.
2008-02-02 21:24:20
souffledunange: I'd say to look into the emigrantdirect.com or ingdirect.com sites for savings accounts (because it's good to have some money readily available in case of emergency) in addition to a retirement account such as a 401(k) or IRA. Since you're self-employed, you have the option of setting up a solo 401(k). With IRAs, you have a couple of options to choose from, i.e. SIMPLE IRA, SEP IRA, traditional, roth.
Of course, you should analyze the pros and cons of all of these. Consult a financial planner/tax professional if you have questions. Shop around - it's your money at stake.
2008-02-02 21:24:20