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Everyone who is in the business of trading has the ability to have their
business sponsor and form a 401k retirement investing plan for their
business. The benefits are wonderful in each of two different scenarios:
1. Let's say you are trading, or beginning to trade and have a 401k or 403(b
) from a previous employer, or you have rolled one into an IRA, or you have
a self funded IRA. You probably don't know this, but you have the ability to
set up your own 401k investing plan and transfer all of your retirement
funds into it. This would make you a Trustee of your own retirement plan at
this point, giving you the freedom to make any "prudent" investment. What
this means to a trader is that you can make your own investment decisions
for your retirement funds, rather than leaving your money with professional
money managers who are cutting your capital in half, effectively making your
401ks into 201ks! In addition to the wonderful benefit of being able to
control all of your 401k retirement investing decisions, you can borrow up
to $50,000 from it to augment your own personal trading account.
2. The second type of retirement funding has to do with secondary tax
strategies in your Tax Efficient Trading Plan. In the years that you make
money trading, when you need a powerful vehicle to lower your taxes, you and
your business can contribute up to $40,000 to your retirement 401k plan!
Not only is this contribution an expense to the business, it lowers your
taxable income; it is not income to you until you retire, and have reaped
the benefits of years of compounded growth.
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DT, 唯有DT |
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