DE-STRESSING
RETIREMENT PLANNING 

Nia is here to simplify and offer smart financial planning tools to the “business-of-one” so that creating future financial security feels simple.

Nia is in the process of registering with the SEC as a Digital Financial Advisor, so that it can offer financial advisory services for everyone.

At Nia, our ultimate goal is to simplify your personal finances as a “business-of-one” so that you stop feeling “it’s so complex” whenever you think about your financial future.

Nia is geared towards those who are avoiding thinking about their financial future, and investing towards it, because things feel so overwhelming and complex.

We all know health insurance in the US is expensive and complex. It seems easier when your employer takes care of everything. As a self-employed, you need to compare plans and enroll yourself. We have some recommendations and resources available for you.

The most popular retirement plans unrelated to the workplace are Traditional IRA and Roth IRA (see more below). Those are used by employees and self-employed regardless. Specifically for the self-employed, the government created the SEP IRA and Individual401k (aka solo401k) - which are plans with GREAT tax savings. At Nia we hope you can establish and contribute to these plans as they can accelerate having a future safety net significantly.

When you are a “business-of-one” you wear 2 hats - that of the Employer and of the Employee. The idea of “matching a 401k” was a way for employers to incentivize employees to contribute to their retirement and take advantage of great tax benefits. . Now that you’re both, you will need to incentivize yourself.

ROTH IRA- A unique type of account created by the government with a magical feature. The money that grows in a Roth IRA can be withdrawn tax free. Though contributions are done with after-tax dollars, the earnings on the contributions, if taken out after you reach 59½ will not owe any taxes. There are limits on how much you can contribute to a Roth IRA ($6,000/year) and some qualifications based on your income. Yet if you qualify, this is a great account type to use for your long-term investments. TRADITIONAL IRA - similar to a Roth IRA, however the money you put in is tax deductible, and you pay taxes on it when you withdraw. If you withdraw before 59½ you will need to pay a penalty of 10%, and you must start withdrawing by age 72 or you’ll pay a penalty. SEP IRA - A SEP IRA is a great planned for the self-employed and small businesses. You can contribute up to 20% of your self-employment compensation or $61,000 for tax year 2022, the lesser of the two. Contributions are tax-deductible, and earnings are tax-deferred, meaning you pay taxes only when you withdraw after you reach 59½. Individual/Solo 401k - ​Geared for the solo business owner (no employees) this plan offers a high tax deductible contribution limit up to $61,000 for 2022. Taxes will be paid upon withdrawal after 59½. You can also choose this plan in a Roth version, where you contribute post-tax money, and it grows and is withdrawn tax free. Similar to a Roth IRA, withdrawing any investment earnings before age 59½ will cost you penalties and taxes.

A great tax-advantaged account where you can save for future health care needs. HSA can be established if you have a High Deductible Health Plan. If you’re curious whether a self-employed can access a High Deductible Health Plan, you’d be surprised you can. An FSA is a use-it-or-lose-it account each year.

Short-term and long-term disability - replacing your income when you cant work because of injury or illness unrelated to your job. According to the Social Security Administration, about 25 percent of 20-year-olds will become disabled at some point before reaching age 67.

Life insurance is a contract between you and an insurance company (the insurer). During your lifetime you pay premiums to the insurance company, and in exchange, when you die, the company will pay a lump sum to your beneficiaries. There are no restrictions on how your beneficiaries can use the money.