Ramsey Everyday Millionaires How Much Should I Invest If I’m Self-Employed?
Apr 1, 2026
A 60-year-old consultant’s retirement puzzle sparks practical advice on investing while self-employed. They compare solo 401(k) versus SEP IRA and explain catch-up limits. Paying off a mortgage early versus investing gets debated with savings scenarios. Legal steps for a special needs trust and ways to reduce retirement anxiety are covered.
AI Snips
Chapters
Transcript
Episode notes
Terry's Late Career Consulting With A Pension And Caregiver History
- Terry is 60, debt-free except a $60k mortgage, has a $47k pension and now earns $130k–$150k gross consulting.
- She paused saving earlier to support a special needs adult son, which left little invested going into this second career.
Invest 15 Percent While Paying Down The House
- Invest 15% of your income while paying extra on the mortgage until it’s gone.
- Jade Warshaw recommends prioritizing 15% retirement contributions and extra house payments so you build investing habit and remove housing risk quickly.
Use A Solo 401k To Supercharge Catch-Up Contributions
- Consider a Solo 401(k) as a self-employed person to access very high contribution limits and catch-up amounts at age 60.
- Jade notes Solo 401(k)s can allow roughly $80,000 of contributions in this scenario, letting you accelerate retirement savings.