When you work as an independent contractor as well as have a job with an employer, you have a full plate when it comes to your work life. Your plate might be so full, in fact, that you do not have much time to think about things like your retirement savings and planning. However, when you are in such a work position, it is vitally important that you take a good, hard look at what you want and need from your retirement savings and develop a retirement plan that works for you. Get to know a few tips to help you with your retirement planning when you are both an employee of a company and an independent contractor. Then, you can be sure you are doing what is best for your future. 

Do Not Ignore Your Employer's Retirement Plan

If you work for a company as an employee, it is often in your best interest to take advantage of the retirement plan they offer. One of the major benefits of being an employee in a company-run retirement plan is the potential for matching contributions. Your employer may offer a contribution match up to a certain percentage of your income. Use this!

If your company offers you up to a 5 percent match on your retirement contributions, then you should be investing at least 5 percent of your employee income into that retirement account. Essentially, this will mean that the equivalent of 10 percent of your employee income will be added to your retirement account each pay period. You do not want to miss out on those benefits. 

Do Not Rely Entirely on Your Employer's Retirement Plan

While your employer's retirement plan is a great option for you, because you also work as an independent contractor, you are also essentially self-employed. If you ever decide to transition to being fully self-employed, or you want your retirement accounts to also reflect that additional income you have, you will want to avoid relying entirely on your employer's retirement plan. 

As such, you should consider your options for a self-employed retirement plan. There are several options to consider. You can opt for a solo 401k plan or invest in ROTH or traditional IRAs. The SEP IRA plans available through many brokers and are an option for small business owners and people who are self-employed. The SEP IRA is a traditional IRA and has a significantly higher contribution limit than just a regular IRA account. 

Making sure you have a separate retirement account for your self-employment income will ensure that you are contributing the right amounts to your retirement as a whole. It will also ensure that you are prepared should you ever make your self-employment income your main source of income. 

Now that you know some of the tips to help you with retirement when you work as both an independent contractor and an employee, you can be sure you are securing your financial future going forward. For more tips on retirement planning, work with local financial services.