I’m 45, self-employed, and don’t have access to a 401(k). I save $15,000/year, but not sure what to focus on. What’s the best strategy for an American without a workplace retirement plan?

At 45, it’s time to get serious about retirement savings. At this age, you’re likely at the midpoint of your career, which means you have time ahead of you to save, but not a lot of time to lose.

If you’re saving $15,000 a year, and you continue doing so, you might set yourself up for a fairly comfortable retirement.

The stock market’s average annual return over roughly the past 100 years is 10%. If you save $15,000 a year over 20 years in an account that generates a more modest 7%, you’re looking at a balance of $615,000 by age 65, which is when you’re first eligible for Medicare.

By contrast, the median household retirement savings balance of Americans ages 65-74 was $200,000 in 2022, according to the Federal Reserve. So a $615,000 nest egg gives you more than three times that total on your own.

But it’s important to find the right place to put your retirement savings in the absence of a workplace plan. Here are three options to consider.

1. An IRA

The nice thing about IRAs is that anyone with earned income can open one. And you either get a tax break on your contributions and tax-deferred gains with a traditional IRA, or tax-free gains and withdrawals with a Roth IRA.

But one drawback of IRAs is that they only allow you to contribute up to $7,000 a year if you're 45. That may not work for you if you're looking to save $15,000 a year.

That said, if you're self-employed, you can also look at contributing money to a SEP IRA. Short for Simplified Employee Pension, in 2025, you can contribute up to 25% of your net earnings from self-employment to one of these accounts, up to a total of $70,000.

You should also know that with an IRA, you could face a 10% penalty for withdrawing funds before turning 59½. That same penalty applies to 401(k)s.

2. A solo 401(k)

A solo 401(k), also known as the one-participant, self-employed, individual, or personal 401(k), is a special retirement account for people who are self-employed. If you're 45, you're allowed to contribute up to $70,000 to a solo 401(k) in 2025. This includes up to $23,500 pre-tax dollars as an employee and 25% of compensation (after Social Security and Medicare taxes) for the employer portion.

If your aim is to contribute $15,000 a year toward retirement, solo 401(k) limits give you the option to keep all of your savings in a single account. That could make your retirement portfolio easier to manage.

3. A taxable brokerage account

If you don't want to be subject to any sort of annual contribution limit, and you don't want to worry about early withdrawal penalties, you could look at saving for retirement in a taxable brokerage account. These accounts let you invest for any goal you have in mind.

It's generally best to try to get a tax break on your retirement plan contributions. So funding a taxable brokerage account could be something you do once you've maxed out your tax-advantaged accounts.

Investing wisely

It's a great thing to take advantage of the magic of compounding and save money consistently for retirement. And you don't have to let the fact that you don't have a workplace plan stop you. But it's important to manage your retirement portfolio smartly.

First, that means maintaining a diverse investment mix. If you opt to save in an IRA, taxable brokerage account, or solo 401(k), you can hold pretty much any asset you want. Workplace 401(k)s typically do not allow savers to hold individual stocks, but the rules are different for IRAs, taxable brokerages, and solo 401(k)s.