In fact, most agents must share their sales commissions with the brokerage, traditionally in a 50-50 split. About 19 percent of self-employed workers are in sales and marketing occupations, according to the U.S. Department of Labor's Bureau of Labor Statistics. For individuals earning irregular incomes, keeping a cash reserve equal to six months' average income is sufficient to sustain the individual through the peaks and valleys of a typical sales year. The goal is to avoid accumulating debt or liquidating assets that might trigger taxes or penalties. Mr. Rogers recommends individuals stick a certain percentage of any income they receive into a simple money market account.
Traditional IRAs are a common savings vehicle.
The employer can match the contribution to as much as 3 percent. In the case of self-employed individuals, they may match their contributions. The SEP IRA, which stands for Simplified Employee Pension, allows individuals to contribute 15 percent of their income but is difficult for self-employed individuals to administer if they have employees. Mr. Rogers said. As a real estate agent, Mary Booker-Porteous was thinking only about her next sale and not much about her retirement years.