Skip to main content
Client Portal

FP Portal

Find A Pro Near You
Free Insurance Quote

Check out the background of this investment professional on FINRA’s Broker CheckBrokercheck

Check out the background of this investment professional on FINRA’s Broker CheckBrokercheck
Posted on:

How to Invest Without 401(k)

Written by:

Matt Manson

How to Invest When Your Company Doesn’t Offer a 401(k).

Here’s something a lot of people don’t realize: your employer not offering a 401(k) is an inconvenience, not a dead end. Many people have successfully saved for retirement without a 401(k), though individual results will vary. You just need to know where to look.

Get Your House In Order First.

Before you put a single dollar into an investment account, you need to make sure the foundation is solid. That means a $1,000 starter emergency fund, all your non-mortgage debt paid off, and then a full emergency fund (three to six months of expenses) sitting in a savings account. Skip these steps and you’ll end up pulling money out of investments the moment life gets messy, which it always does.

Once that’s handled, you’re ready. Not before.

Start With an IRA

Should you use a Traditional or Roth IRA? Well that depends on your financial situation. To put it simply, a Traditional IRA is invested with pre-tax dollars where you defer your taxes until your withdrawals. A Roth IRA’s contributions are made post-tax so your withdrawals are tax-free! If early withdrawals are made, you may be subject to penalties in an IRA.

For most people without a 401(k)…the Roth IRA is the first place your money should go. Here’s why it’s so good: you put in money you’ve already paid taxes on, it grows for decades without the IRS touching it, and when you retire and start pulling it out, still no taxes. You’re basically cutting the government out of your retirement, and that’s a beautiful thing.

For 2026, you can contribute up to $7,500 a year if you’re under 50, or $8,600 if you’re 50 or older. There are income limits, so check IRS guidelines for your situation. Once your account is open, put your money into growth stock mutual funds spread across four types: growth, growth and income, aggressive growth, and international. Set up automatic contributions and don’t touch it.

To put it in real terms: if you’re 25 and you max out a Roth IRA every single year until 65 at a 10% average annual return, you’d retire with roughly $3,689,833. Start at 35 and that number drops to $1,395,520. Wait until 45 and you’re looking at around $510,963. The math is simple. The earlier you start, the more time does the heavy lifting for you. 

Self-Employed? You’ve Got More Options Than You Think!

If you work for yourself, whether freelancing, contracting, or running your own business, you actually have access to some solid retirement accounts that most people have never heard of.

A SEP-IRA lets you contribute up to 25% of your net self-employment income, which can add up fast if you’re doing well. It’s simple to open and easy to manage. A Solo 401(k) works well too, especially if your income is higher. You’re essentially playing both the employee and employer role, which means you can collect more than a SEP-IRA allows in certain situations. 

Either way, don’t leave these on the table just because nobody at a job handed them to you. 

The Number to Keep in Mind

A common guideline is to consider saving around 15% of your gross household income for retirement, but individual circumstances may warrant a different approach. That’s the number. Work backward from there, figure out which accounts get you to it, and stay consistent. The people who build real wealth aren’t the ones who found some secret investment. They’re the ones who just kept going.

Ready to get started? You can open a Roth IRA, SEP-IRA, or Solo 401(k) by reaching out to an advisor here at SmartPro. We’ll walk you through the process and make sure you’re set up the right way from day one. 

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge is not affiliated with SmartPro Financial. These are the opinions of SmartPro Financial and not necessarily those of Cambridge Investment Research, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Investing involves risk, depending on the types of investments, there may be varying degrees of risk.

Ready to connect with an advisor?

Your financial situation is unique. You need someone who understands what you’re going through. Click the button below to connect with a pro.
find a pro
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge is not affiliated with SmartPro Financial. Fixed insurance services offered through SmartPro Financial. These are the opinions of SmartPro Financial and not necessarily those of Cambridge Investment Research, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.