This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TD Ameritrade Self-Employment And Retirement Survey, November 2013 (Graphic: TD Ameritrade).

Being self-employed means more control over your working life, but it also means taking the reins on your retirement planning. While the traditionally employed are being enrolled in company-sponsored 401(k)s with regular automatic contributions, nearly 70 percent of entrepreneurs, contractors and the like are often not saving for retirement on a regular basis – if at all – according to a new survey of self-employed Americans released by TD Ameritrade Holding Corporation (NYSE:AMTD).

TD Ameritrade’s Self-Employment and Retirement Survey found that while many self-employed people expect their savings to fund their retirement, 40 percent aren’t saving regularly and 28 percent currently aren’t saving at all. That’s drastically more than the number of traditionally employed people who do not save regularly (12%) or at all (10%). Most surprisingly, 29 percent of Generation X and 32 percent of Generation Y who are self-employed say they currently do not save for retirement.

Reports indicate that the number of self-employed jobs in the US have increased more than 14 percent since 2001. Today, more than 10 million Americans call themselves the boss. 1 Entrepreneurism is an important piece of this country’s economy and has long been viewed as the traditional means to creating wealth. But, the survey findings beg the question: are self-employed people betting too much on the future?

“For entrepreneurs there needs to be a balance between investing in the business today and investing in their future financial well-being,” said Lule Demmissie, managing director of retirement at TD Ameritrade. “When you’re self-employed the temptation is to think that the business will grow enough that you won’t need to save today. But, you don’t know when the next payout is coming and you also don’t want to forfeit the power of tax-free compounded growth in vehicles like an IRA. Having a retirement plan in place with regular saving is doubly important.”

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs