Why do self-employed individuals typically choose HR-10 or Keogh plans?

Self-employed individuals often choose HR-10 or Keogh plans primarily because these plans offer higher contribution limits compared to other retirement savings options available to them. The ability to contribute a significantly larger amount allows self-employed individuals to build their retirement savings more effectively, which is especially important for those who do not have access to employer-sponsored retirement plans.

These plans are designed to provide self-employed individuals with the flexibility and benefits that meet their unique financial situations. For instance, in a Keogh plan, contributions can be made based on the income level of the business, making it easier for high earners to maximize their retirement savings.

While other options such as mandatory plans or guaranteed returns might seem appealing, they do not provide the same level of contribution potential and flexibility that Keogh and HR-10 plans offer. The focus on higher contribution limits is key for self-employed individuals looking to ensure a secure financial future in retirement.