If you’re a solopreneur, you probably figured out health insurance shortly after starting your business. You may have even tracked down life and disability insurance policies. But setting up a retirement plan—too complicated, right? It can be, if you want to invest in real estate, cryptocurrency, or other assets that you can’t buy through a brokerage.
Ocho is a company that’s helping solopreneurs build wealth by helping them set up Solo 401k plans and learn about money through video courses.
If you own a business and are interested in learning more about how a 401k can benefit your future, here’s what you need to know about Ocho.Quick Summary
- Easy to set up Solo 401k for business owners, freelancers, and self-employed people.
- Invest in traditional assets like stocks, ETFs, and bonds or alternatives like real estate and crypto
- Pay one flat fee for all your 401k management
Ocho Details | |
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Product Name | Ocho Solo 401k |
Commissions | $299 per year |
Account Type | Solo 401k Traditional IRA Roth IRA |
Promotions | None |
What Is Ocho?
Ocho is a solo 401k platform that is purposefully built to help business owners maximize tax-advantaged retirement contributions. Ocho takes care of the administration and paperwork so you can focus on building wealth outside of your business.
Ocho charges one Flat Fee each year, and it gives solopreneurs the freedom to max out their individual 401k contributions year after year.
Ocho allows you to invest in conventional assets (stocks, bonds, ETFs, and other assets from a brokerage) and alternatives. It’s even bringing on a “checkbook” feature that will allow you to invest in real estate (including paying for repairs) through your 401k.
What Does It Offer?
Ocho allows you to create and manage your Solo 401k account through one portal, so you can focus on building your investments and your business.
Flat Fee Pricing For A Solo 401k
Ocho charges $299 per year to manage the paperwork and administration of your solo 401k.
While some companies (including Charles Schwab and Fidelity) don’t have overhead fees, Ocho includes a flat fee of $299. However, they offer a few extras like the checkbook feature and opportunities to invest in alternatives. Ocho also has a video subscription that comes with a separate fee.
Invest in Alternatives
Ocho makes it easy to invest in alternatives like cryptocurrency, real estate syndications, or even startups through Ocho. You aren’t limited to traditional financial assets.
Ocho links a checkbook to your 401k, so you can fund any investment, make any trade, or even pay the plumber if the toilet in your investment property leaks.
Manage Administration and Paperwork
With Ocho, you don’t need to manage the paperwork that characterizes contributions and reports balances to the IRS. Ocho manages the administrative side. You simply report your contributions when you file your tax return.Max Out Your 401k
Not sure how much you can put away for retirement? Ocho helps you to figure out the maximum allowed contribution based on your income in a given year.
Not everyone can contribute the $66,000 maximum contribution in 2023, but you may be able to contribute more than you think. Ocho helps you figure out how much you can contribute as an employee and an employer.
Choose Between Roth and Traditional
You can decide whether to make Roth contributions or Traditional contributions. Ocho even makes it easy to do mega backdoor Roth contributions.
Since Roth contributions grow tax-free and can be withdrawn tax-free, the mega backdoor Roth can be a huge advantage during some of your higher earning years.
Ocho Money Video Courses
In addition to the Ocho Money Account, you can buy a $299 video subscription service (Ocho Money) that gives you access to videos on a range of financial topics.
You can get a taste of some of the content through pre-recorded webinars and blog content. The videos cover a range of financial topics including angel investing, tax planning, and more.
Are There Any Fees?
Ocho charges a flat $299 fee for its flagship solo 401k. If you have W-2 employees who work more than 1,000 hours annually, you can’t use Ocho’s product. The company doesn’t charge any other fees, but the investments you buy may have fees.
On top of the $299 fee for an account, you will pay $299 annually if you want to use the video streaming platform.
How Do I Contact Ocho?
The best way to contact Ocho is through the messaging widget on the website. You can find the widget in the lower right-hand corner of the site. People respond to messages during standard East Coast working hours.
You can also contact Ocho by emailing [email protected].
Ocho is owned by the Vibes Company Inc. The Vibes Company headquarters is 10 Grand Street, Brooklyn, NY, 11249.
How Does Ocho Compare?
If you’re only going to invest in traditional assets, Fidelity, E*Trade or Charles Schwab offer better value. Fidelity and E*Trade even offers robust Roth options.
However, solopreneurs who want to invest in alternative investments can’t find a better deal than Ocho. The company is set up to make alternative investing easy.
Unlike some of the other solo 401k providers, Ocho provides a bank account, a brokerage, and a checkbook, so you can manage your investments directly. It even has great-looking charts and dashboards so you can understand your investing needs.
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This post first appeared on The College Investor | Investing And Student Loan, please read the originial post: here
