Vanguard Schedule C: Fill & Download for Free

As a small business owner who files a Schedule C for a proprietorship or a LLC type S, you can contribute up to the net income of the business or $6000, whichever is higher. The schedule C income is legitimate earned income. As soon as you know you have netted at least the amount you want to contribute, you go to Vanguard or Fidelity or several others or your bank and make an account, and start your Roth. I just hassled my son to do it, and it was quite easy.

If you were my grandfather, father, someone my age, my son’s age or a teenager, the advice is as follows:Set 10% of your money aside to invest. Increase it to 20% within 5 years. If you’re under the age of 22, save all of it (while you live with your parents.) The time value of money will make you a millionaire. (Read the book, Automatic Millionaire)Have a goal that works for you. It will help you thru the impulsive times. e.g. I want to save $100 month for my grandchild’s college, (so I’ll work at the farmer’s market on weekends). I have to buy a new car in 2 years (so I’ll start saving the car payment amount now). I want to buy my first condo, (so I’ll apply at the bank, find out what I need to do). Mine is, I am good with driving a 15 year old Camry because I am saving the $400.00/m car payment for the downpayment on a rental unit.If you’re short of cash, do not change #1. Find a different way to make some extra money. Ask others for ideas. All work is noble.Spend money on what is important, not what makes you feel important. Buy Quality, not Quantity. For big purchases, don’t buy retail.Think about your spending differently. You want a new suit and the choice is $500 vs $1,500. You can afford either. Option: think about a trip to Vietnam. Have a custom suit made for yourself and stay there for 5 days for $1,500.00. Other ideas: Buy a 2 year old car vs new. If you’re working full time, start a small schedule C business and legitimately write off your expenses. (we did all of the above.)Every now and then, track all of your expenses for a month or 2 and then review where you’ve spent money. Does it fit into your goal?Keep your investing simple. If it’s too good to be true, stay away. Tips are for waiters, not investors. Learn, Learn, Learn. Only you can prevent having your money embezzled.If you’re new to investing, go with a company like Vanguard. They don’t get paid commissions and their fees are better than reasonable.Don’t play the market. (less than 8% of fund managers beat the market over time, and you won’t have access to them.)Train yourself to Feel Grateful and Live Abundantly. We have so much here in the USA at our beck and call. We have roads to drive on, decent public transportation, farmer’s markets to buy fresh food, state and national parks to visit, people that have good intentions. streams to fish etc. It doesn’t cost much other than our time and some creatively to access them. Take advantage of these things and enjoy.-Lessons from a Wise, Kind and Fair PaPa

If you are truly an independent contractor, you file your taxes using schedule C. If that is true, then you have a wonderful option called a SEP IRA. SEP stands for Simplified Employee Pension. Go to this web site: An official website of the United States government and search for SEP IRA. Here’s an excerpt of what you will find there:A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP.Choose a SEP PlanLearn the basics of a SEP planEstablish a SEP PlanSet up a SEP planParticipate in a SEP PlanWho can participate, benefits of participation, plan contributions and withdrawalsOperate and Maintain a SEP PlanPeriodically review the plan, update for recent law changesAlthough an SEP is designed for a small employer with a few employees, it can be used by a very small employer whose only employee is him or her self. You can easily set up a SEP IRA at any major investment firm such as Vanguard or Fidelity or Schwab. One great thing about a SEP IRA is that your contribution limit is based on your income. In other words, if you make good money as an independent contractor, you can contribute a lot more to a SEP IRA than you would be allowed to contribute to a traditional IRA.I’m not sure if there is such a thing as a Roth SEP IRA, but if not you should also look into creating a Roth IRA and contributing to that as well. It will have a lot of wonderful benefits when you retire and you can only contribute when your income is below a certain level, so the best time to do so is when you are young.