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White Coat Investor Podcast

MtoM #137: Roadie Becomes a Millionaire and Finance 101: Retirement Accounts for the Self Employed

Sep 25, 2023
26:45
Snipd AI
Interview with a concert roadie who became a millionaire. Discussed alternative careers, living below means, retiring in affordable countries. Also covered retirement accounts for self-employed individuals like individual 401(k), Roth conversions, contribution limits, and more.
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Podcast summary created with Snipd AI

Quick takeaways

  • Self-employed individuals should consider an individual 401(k) and cash balance plan for retirement savings, while also utilizing an HSA for tax advantages.
  • The podcast highlights the financial success of a concert roadie, emphasizing the value of non-traditional careers, developing transferable skills, and potential benefits of living abroad.

Deep dives

Saving for Retirement as a Self-Employed Person

The main retirement savings option for self-employed individuals is an individual 401(k), which allows for both employee and employer contributions. Contributions can be made on a pre-tax or after-tax basis, with the possibility of converting after-tax contributions to Roth. Depending on age, a cash balance plan can also significantly boost retirement savings. In addition to retirement accounts, an HSA can be used for healthcare expenses and further tax advantages. After maxing out retirement account contributions, individuals can invest in a taxable brokerage account for additional savings.

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