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Posted by Marcus Beckford on October 30th, 2017

Being self-employed gives you a certain measure of freedom, but it doesn’t give you an excuse to skip out on saving for best life insurance.

In fact, it makes putting money away that much more crucial: Unlike an employee, who might have access to a 401(k) or — much more rarely — a pension, you’re on your own. But getting started is unlikely to be high on the priority list: 42% of self-employed professionals and small-business owners are not preparing for financial goals, according to a survey this year by FreshBooks, an accounting software firm.

Figuring out how much to save is the first step. You can do it with NerdWallet’s retirement calculator. With a number in mind, it’s time to decide where to put your savings. Self-employed workers have five main retirement planning options:

1. Traditional or Roth IRA

QUICK FACTS

Best for: Open to everyone with earned income, though Roth IRAs have income limits. An IRA can be used in combination with other plans, but the amount of traditional IRA contributions you can deduct from your income taxes might be reduced. If you’re leaving a job to start a business, you can also roll your old 401(k) into an IRA.

IRA contribution limit: ,500 in 2017 (plus ,000 catch-up contribution for those 50 or older).

Tax advantage: Tax deduction on contributions to a traditional IRA; no immediate deduction for Roth IRA, but withdrawals in retirement are tax-free.