What do you guys do for retirement? I am kind of little late to the game, but since it is the tax time, as one of my Financial Advisor buddies recommended I will start putting some money to a SEP IRA and save some money on my taxes too. Is SEP IRA the best option for the prop trader? THX
Since many prop set-ups are not tax friendly (why should they be, when the goal is trading and fees?) a prop trader might not even be allowed any retirement plan contribution. But if you are allowed, then I feel that the "best" vehicle for a younger guy (say under age 40) is the self-employed 401(k) plan. Older people (maybe 50+) with solid 6 figure earnings still can sometimes get more mileage out of the Defined Benefit Plan.
Why is one not allowed to have an IRA if he is a prop trader and why is SEP 401K is better than SEP IRA? Thank you..