Investing When You Do Not Have a 401(k)

In partnership with

If your job does not offer a 401(k) or you are self-employed, working part-time, or between careers, it can be easy to feel like you are falling behind on retirement planning. But here is the truth: you do not need a 401(k) to start investing and building long-term wealth.

There are multiple ways to invest on your own, even without an employer-sponsored plan. The key is to be initiative-taking, consistent, and informed about your options. The earlier you start—even with small amounts—the more time your money has to grow through compounding.

Why It Matters

Without a 401(k), you are missing automatic payroll deductions and employer matching, but you still have full access to powerful investing tools. Investing independently gives you more control over where your money goes and how it grows.

Smart Alternatives to 401(k):

1. Roth IRA or Traditional IRA

• Roth IRA: Funded with after-tax dollars. Your investments grow tax-free, and withdrawals in retirement are tax-free. Great for those expecting a higher income later.

• Traditional IRA: Contributions may be tax-deductible, and you pay taxes when you withdraw. Ideal if you want upfront tax breaks now.

• Contribution limit (2025): $7,000 annually (or $8,000 if age 50+).

2. SEP IRA (Simplified Employee Pension)

• Perfect for freelancers, contractors, and small business owners.

• Allows contributions of up to 25% of net earnings, with a much higher cap than a traditional IRA.

• Easy to set up and flexible based on your income each year.

3. Solo 401(k)

• Designed for solopreneurs or business owners with no full-time employees.

• Higher contribution limits and the ability to contribute both as an employer and employee.

• Optional Roth version available and may include loan provisions.

4. Taxable Brokerage Account

• No tax benefits, but no contribution limits or withdrawal rules either.

• Great for general investing and building wealth beyond retirement needs.

• Can be used for short-, medium-, or long-term financial goals.

5. HSA (Health Savings Account)

• If you have a high-deductible health plan, an HSA offers triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

• Unused funds roll over year after year and can function as a secondary retirement account.

How to Start Investing Without a 401(k):

• Open your accounts. Use trusted platforms like Fidelity, Vanguard, or Charles Schwab.

• Automate your contributions. Set a fixed amount to invest monthly, just like a 401(k) would deduct automatically.

• Choose low-cost index funds or ETFs. These are diversified, cost-efficient, and beginner friendly.

• Review your plan annually. Adjust your contributions and investments as your income grows.

Final Thought

Not having access to a 401(k) does not mean you cannot retire well or build wealth. It just means you have to be more intentional and take control of the process yourself. With the right tools and consistent action, you can create a solid investment strategy that supports your future, and it does not have to start big to make a big impact.

Amazon Prime members: See what you could get, no strings attached

If you spend a good amount on Amazon, this card could easily be worth $100s in cash back every year. And — even better — you could get approved extremely fast. If approved, you’ll receive an insanely valuable welcome bonus deposited straight into your Amazon account, ready to use immediately.

You also don’t have to jump through any hoops to get this bonus. No extra work or special spending requirements. Get approved, and it’s yours.

This might be one of the most powerful cash back cards available, especially considering how much most people spend on Amazon each month. It gives you the chance to earn cash back on the purchases you’re already making, turning your routine shopping into something that actually pays you back.

If you shop at Amazon or Whole Foods, this card could help you earn meaningful cash back on every purchase you make. But this offer won’t last forever — and if you’re an Amazon Prime member, this card is as close to a no-brainer as it gets.

Amazon Prime members: See what you could get, no strings attached

Learn How To Apply