SEP Investments

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M Women have always been self-employed. My farm neighbor Wilma sold eggs and supplied our family and many others. Today’s self-employed woman has a myriad of options. She is taxed at a high rate, but has choices.

V One option is the SEP IRA.  Put pre-tax money into this retirement vehicle. Immediate tax benefit, later income for retirement. Restrictions include percentage of income and some caps. This option is increasingly important for business owning single women and their retirement income because it’s typically lower than men’s.   

M It takes discipline to put that money aside, not to spend it, or just let the government take its haircut.  Be accountable, plan the future.