Investing in an IRA, an annuity, or in personal savings means you are totally responsible for directing your own investments. How conservatively or aggressively you invest is up to you. It will depend in part on how willing you are to take investment risks, your age, the stability of your job, and other financial needs. Learn as much as you can about investing and about specific investments you are considering. You also may want to seek the help of a professional financial planner.
Many people today work for themselves, either full-time or in addition to their regular job.
They have several tax-deferred options from which to choose. This is the same type of SEP described earlier under employer-based retirement plans. Only here, you re the employer and you fund the SEP from your earnings. You can easily set up a SEP through a bank, mutual fund, or other financial institution. For one thing, they come in several varieties.