Employees of many companies receive comprehensive benefits packages. But if you’re a member of the gig economy, you’ll have to seek these benefits on your own. How can you close this benefits gap?
First, consider retirement plans. Full-time employees may have 401(k) plans, which offer tax advantages and several investment options. You can get some of these same features in various retirement plans, such as an SEP-IRA, a SIMPLE IRA and even a “solo” 401(k). A financial professional can help you find the right plan.
Next, since you won’t get life insurance from an employer, you’ll have to shop around for coverage. And the same is true for disability insurance.
Then there’s health insurance, a major benefit offered by employers. You may want to visit healthcare.gov, where you can find a local navigator who can discuss your options under the Affordable Care Act. Depending on your income, you might qualify for subsidies.
Finally, because you don’t have access to paid time off and unemployment insurance, consider building an emergency fund.
As a gig worker, you’ll need to be resourceful in obtaining the kinds of benefits offered by employers – but it’s worth the effort.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.