3 Ways Freelance Writers Can Start Saving for Retirement NOW by Starting Small

I hate to be the one to break it to you, fellow business owner, but you need to start saving for retirement. Now. This is not something you can put off any longer. Stop-don't even go there. If you thought I was overbearing and outspoken about your writing career, you should see how I am about money.

No more excuses. You are going to be in your sixties some day, and you need to start saving RIGHT NOW so that you actually have some money then. Retirement is not a joke, and it's not so far off that you don't need to think about it. If you can't afford to save for your retirement, then you'd better start working more hours or find a better paying job, because these excuses only get worse. Before you know it, a decade will go by without a dime being contributed to an IRA.

1. Go to Scottrade, Ameritrade, ETrade, your bank, or any other brokerage firm with really cheap fees (Scottrade looks to be the best) and open an IRA account with a $50 contribution. You'll need to choose a mutual fund, bond fund, or something to invest that $50 in within the IRA. I would stay away from stocks unless you know what you're doing. You should be able to obtain a historical performance data sheet from the firm on several conservative (but not too conservative) funds. Try to choose a no load fund with a low expense ratio.

2. Set up a monthly bank draft of $50 to go into this IRA (more if you can afford it). Get back here-do not tell me you can not afford $12.50 a week. Write one extra article each week, stop smoking as many cigarettes, rent fewer movies, skip two trips to Starbucks-seriously people, it's $12.50 a week. You'll get a tax deduction and if you choose a Roth you may qualify for the saver's credit (check out IRS Pub 590 for details).

3. Make an appointment on your calendar to meet with a financial advisor in 1 year to discuss a SEP IRA and an individual 401K. You can start with a SEP right now--but if the decision making process here is going to slow you down, just open a Traditional or Roth IRA for starters.