Going from a W-2 employee to an entrepreneur can lead to a lot of changes financially. One of those changes can be the way you set up your retirement accounts. According to an analysis by Fidelity Investments, the average balance in 401(k) plans was $103,700 in the first quarter of 2019.
Working with business owners over the past 10 years has helped me identify a common problem entrepreneurs face with their finances. A big misconception people have about their retirement account is thinking their money can only be invested in the stock market. Furthermore, many believe they will face steep penalties and taxes when accessing money in their retirement account. Although there is some truth to that, there are other options that allow entrepreneurs the freedom to use their accounts penalty-free before they reach retirement age. (Read More)