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As a self-employed individual, it’s important to make sure you have a secure retirement plan in place. Investing in an investment account can benefit you for several reasons and help to ensure you reach your financial goals.

First of all, investing in an account allows you to maximize your returns. When you invest, you are taking advantage of the power of compounding — meaning that the money you invest today will generate even more money through interest or dividends over time. Investing in a retirement account also can give you access to tax-free (or reduced-tax) earnings. Most traditional or Roth 401(k) plans offer tax-advantaged savings for retirement. Additionally, some accounts also offer tax deductions which can maximize the amount of money you can save.

Other benefits to investing in an account include access to a wide variety of investments. Depending on your risk tolerance or retirement goals, you can select different asset classes including stocks, bonds, mutual funds, ETFs, and a host of other investment options. Having the ability to create a diversified portfolio suitable to your needs and goals can help reduce overall risk while increasing potential rewards.

Investment accounts can also provide liquidity. This