In case you missed it, in the last two weeks, we've closed two trades which have delivered $2463 in profits. Here are the details:
SOLD the SPDR S&P 500 Growth Fund (SPYG). Bought 4/24/25: $79.50. SOLD 9/2/25 intraday price: $98.13. Return for this trade: $1863/100 shares (23.4%).
SOLD Utilities Sector SPDR Fund (XLU). Bought 4/18/25: $78. SOLD 9/8/25: $84. Return for this trade: $600/100 shares (7.14%).
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How to Tap into an often overlooked retirement plan gem
The best known retirement vehicles are IRA's and 401 (k) plans. But if you're self employed, you might feel left out. Yet, here's a long term held secret. If you own your own business, you can legally save up to $70,000 (or 25% of your earnings) in a Self Employed Pension Plan (SEPP). There are rules to follow, especially if you have employees. But, given the potential for long term wealth building, this type of plan may be worth looking into.
Here's the big advantage. Where a 401 (k) plan may limit your investment options, you can house your SEPP in a brokerage account which gives you access to stocks, ETFs, and other investments such as treasury and corporate bonds, giving you both full control of the account, as well as a wider range of investment options.
Moreover, if you've recently quit a job or have been laid off, you can roll over your 401(k) plan into a SEPP (SEP-IRA) account and continue to contribute as your new business develops or your contract gig income piles up. The bottom line is that even if you don't work for a traditional employer, you can still maximize your retirement contributions in order to build your long term nest egg.
If you own a small business, or work contract gigs and haven't set up a SEPP yet, here are a few important guidelines:
First, consult your accountant for the full details required to set one up, especially if you have employees who may be eligible. If you're a one person shop, it's a lot easier to set up a SEPP (SEP-IRA). Here are some basic details to get you started:
You must be at least 21 years old
You must have owned the business, or worked for the employer who may offer the SEPP for at least three of the last five years
If you're self employed (essentially in a one person business) you can set a SEPP (SEP-IRA) without waiting.
You must earn at least $750 in compensation for the year
Especially sort the following out prior to starting a SEPP, especially if you have employees beside yourself
Check the requirements applicable to all eligible employees, including yourself
Look into the specifics of contributing as a self-employed individuals via a SEP IRA, which is useful if you don't have employees
Remember that your contributions are tax-deductible, and the funds grow tax-deferred until you withdraw them. The same rules on withdrawal that apply to traditional IRAs generally apply to SEPP plans.
The bottom line is that if you're self employed, or own a small business - even if you make a living by combining several gigs and contract jobs, you can still plan for your retirement. A SEPP, or a SEP IRA may be the perfect vehicles for you. Always check with your accountant or financial professional before making decisions which may have significant tax implications.