As a 1099 contractor, securing your financial future can seem daunting, especially when you're managing unpredictable income and expenses. However, with the right strategies, you can maximize your retirement savings even on a limited budget. This blog will provide practical tips to help you leverage the power of compound interest, understand the tax benefits available to you, and make the most of every dollar saved.
Compound interest is one of the most effective tools for building wealth over time. It allows your investments to grow exponentially as the interest earned each period is added to the principal, earning more interest in the subsequent periods.
Example: If you start with an initial investment of $1,000 and contribute an additional $100 every month into a retirement account with an average annual return of 7%, in 30 years, you could have approximately $122,700. This growth is largely due to the power of compound interest working in...
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