I hit 30 and realized I had a closet full of expensive lingerie, a leased BMW, and $0 in retirement savings. I didn’t have a corporate HR department to set up a 401k match for me. I was aging out of the industry with no safety net. I realized that “Future Me” was uninsured against poverty.
Key Takeaways
- Solo 401k is the Creator Cheat Code: If you have no full-time employees (except a spouse), you can open a Solo 401k. You can contribute as both the Employee ($23k+) AND the Employer (25% of profits).
- Tax Deduction Now, Wealth Later: Every dollar you put in lowers your taxable income today. If you make $150k and put $50k in a Solo 401k, you only pay taxes on $100k.
- SEP IRA is Easier but Lower Limits: A SEP IRA is paperless and easy, but a Solo 401k allows for “Catch Up” contributions and loans.
- Bankruptcy Protection: ERISA-qualified retirement accounts (like 401ks) are generally protected from creditors. If you get sued for copyright/liability, they can’t touch your retirement money.
The “Why” (The Trap): The “Cash Economy” Mindset
Creators often hoard cash or buy “assets” like designer bags, thinking that’s wealth.
The trap is Inflation and Taxes.
- Taxes: You are paying the highest tax bracket because you aren’t using tax-advantaged accounts.
- Asset Protection: Cash in a bank account can be seized in a lawsuit. Money in a 401k is legally shielded (in most cases).
Not having a retirement plan is a form of being uninsured against “Old Age.”
The Investigation: “I Called Them”
I tried to open a retirement account for “Blue Sky Media LLC.”
1. Fidelity (Solo 401k)
- The Experience: Free to open.
- The Paperwork: Required an EIN and an Adoption Agreement. I had to mail (yes, mail) the forms.
- The Result: No fees. Access to total stock market index funds.
2. Vanguard (Individual 401k)
- The Experience: Similar to Fidelity, but their website is older. Good low-cost funds.
3. Bitcoin IRA / Alt-Asset 401k
- The Experience: High fees.
- My Analysis: You can hold crypto in a self-directed Solo 401k, but be careful. If you lose it, you lose your retirement and the tax break. Stick to standard index funds for the core safety net.
Comparison Table: Retirement Accounts
| Feature | SEP IRA | Solo 401k | Standard Brokerage |
| Contribution Limit (2026) | ~25% of Income | $69,000+ | None |
| Tax Deduction | Yes | Yes | No |
| Loan Option | No | Yes (Borrow $50k) | Margin Loan (Risky) |
| Asset Protection | State Law Varies | High (Federal ERISA) | Low |
Step-by-Step Action Plan
- Get an EIN: You need a separate Employer Identification Number for the 401k trust.
- Open a Solo 401k: Go to Fidelity or Schwab. Do not choose a “Standard” brokerage account; specifically ask for “Self-Employed 401k.”
- Calculate Your Contribution: Use an online “Solo 401k Calculator.” Determine your “Employee” portion (up to ~$23k) and your “Employer” portion (20-25% of net profit).
- Set Up Auto-Draft: Treat it like a bill. Transfer $1,000 every month automatically. You won’t miss it, and in 20 years, it will be $1M.
FAQ
Q: Can I touch the money if I have an emergency?
A: With a Solo 401k, you can take a 401k Loan (up to $50k or 50% of balance) and pay yourself back with interest. You can’t do that with an IRA.
Q: Does my OnlyFans income count?
A: Yes, as long as it is reported on Schedule C or your S-Corp tax return. It must be “Earned Income.”
Q: What if I have employees?
A: If you hire full-time staff (not contractors), you generally cannot use a Solo 401k. You must switch to a Safe Harbor 401k, which is more expensive.
[IMAGE: A graph showing the “Compound Interest” curve of saving $2k/month starting at age 25 vs age 35.]