Savings Don't Add Up
Home-based business owners say saving for retirement is even more important than growing the business, according to a Fidelity Investments poll. But building a nest egg is tough. Some 75% gross less than $100,000 a year and 55% have saved less than $50,000. Nearly 20% of those in business more than 11 years say they haven't yet made enough money to set any aside. Even those already saving could do it smarter, though. While 61% have IRAs, 68% were unaware of SEP-IRAs, designed for the self-employed. SEP-IRAs allow $20,000 more in tax-deferred savings than regular IRAs.