by
Garrett Clark
Financial Guidance
With Inflation Rising, A Solo 401(k) Is the Best Hedge
As inflation continues to erode the value of your dollars, finding ways to protect your future becomes more important than ever. Enter the Solo 401(k)—a powerful retirement tool for the self-employed that not only offers high contribution limits and tax advantages but also allows investment in inflation-resistant assets like real estate and precious metals. In this blog, we explore why the Solo 401(k) is one of the smartest hedges against inflation and how it can help you build real, lasting wealth.
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Inflation isn't just a headline—it's a daily reality. From gas to groceries, rising costs are eroding the purchasing power of every dollar earned. For solo business owners and self-employed individuals, the pinch is especially hard. You’re not only managing household expenses, but also funding your benefits, health care, and retirement.
So, how do you protect yourself? More specifically, how do you make sure your future dollars don’t shrink before you can even use them?
Enter the Solo 401(k). It’s not only one of the most powerful retirement vehicles for self-employed people—it's also one of the best long-term defenses against inflation.
Why Inflation Hurts More When You're Self-Employed
Traditional employees often benefit from cost-of-living adjustments, matched retirement plans, and subsidized healthcare. As a solo business owner, you’re flying solo in more ways than one.
Inflation impacts:
The cost of running your business (materials, advertising, software)
The cost of living (housing, groceries, fuel)
And your ability to save for retirement in today’s dollars while prices continue rising
Without a solid savings plan, inflation silently eats away at your future lifestyle. What feels like enough today may fall drastically short 20 years from now.
How the Solo 401(k) Works
The Solo 401(k), also known as an Individual 401(k), is a retirement plan built specifically for self-employed individuals or business owners with no full-time employees (except a spouse).
Key benefits:
High contribution limits: Up to $66,000 in 2023 (or $73,500 if age 50+)
Dual role savings: Contribute as both the employee and the employer
Tax-deferred or Roth options: Choose how you want to be taxed (now or later)
Investment control: Choose where your money goes—stocks, ETFs, mutual funds, even real estate
These features give you flexibility and firepower. But let’s zoom in on why it specifically outshines other options when it comes to inflation.
Inflation isn't just a headline—it's a daily reality. From gas to groceries, rising costs are eroding the purchasing power of every dollar earned. For solo business owners and self-employed individuals, the pinch is especially hard. You’re not only managing household expenses, but also funding your benefits, health care, and retirement.
So, how do you protect yourself? More specifically, how do you make sure your future dollars don’t shrink before you can even use them?
Enter the Solo 401(k). It’s not only one of the most powerful retirement vehicles for self-employed people—it's also one of the best long-term defenses against inflation.
Why Inflation Hurts More When You're Self-Employed
Traditional employees often benefit from cost-of-living adjustments, matched retirement plans, and subsidized healthcare. As a solo business owner, you’re flying solo in more ways than one.
Inflation impacts:
The cost of running your business (materials, advertising, software)
The cost of living (housing, groceries, fuel)
And your ability to save for retirement in today’s dollars while prices continue rising
Without a solid savings plan, inflation silently eats away at your future lifestyle. What feels like enough today may fall drastically short 20 years from now.
How the Solo 401(k) Works
The Solo 401(k), also known as an Individual 401(k), is a retirement plan built specifically for self-employed individuals or business owners with no full-time employees (except a spouse).
Key benefits:
High contribution limits: Up to $66,000 in 2023 (or $73,500 if age 50+)
Dual role savings: Contribute as both the employee and the employer
Tax-deferred or Roth options: Choose how you want to be taxed (now or later)
Investment control: Choose where your money goes—stocks, ETFs, mutual funds, even real estate
These features give you flexibility and firepower. But let’s zoom in on why it specifically outshines other options when it comes to inflation.
“Inflation eats savings, unless your plan is built to outrun it. A Solo 401(k) gives you that edge.”
Garrett Clark
Director of Sales
1. Higher Contribution Limits = Faster Growth
When inflation rises, you need more money saved to maintain your purchasing power. A Solo 401(k) allows much higher contributions than traditional IRAs:
Traditional IRA cap: $6,500 ($7,500 if 50+)
Solo 401(k): Up to $66,000/$73,500 depending on age and income
That means you can put more money to work now, letting it grow and compound over time—a powerful advantage when every dollar will be worth less in the future.
2. Tax Deferral Multiplies Your Money in Real Terms
One of the most underappreciated benefits of tax-deferred accounts is their compounding potential. When you contribute pre-tax dollars, you reduce your taxable income today and let those funds grow without taxes taking a bite each year.
When prices are high, the last thing you want is to lose more to taxes. A Solo 401(k) lets you invest gross income, defer taxes until retirement (when you may be in a lower bracket), and potentially beat price increases with market returns.
3. Roth Option Protects Your Purchasing Power
Worried about future tax rates? You’re not alone. That’s why the Roth Solo 401(k) option is so powerful.
With a Roth Solo 401(k):
You pay taxes today on your contributions
But your earnings grow tax-free
And you withdraw them tax-free in retirement
This is an ideal inflation hedge if you believe taxes and prices will be higher later. You lock in today’s rates and preserve the full spending power of your retirement withdrawals.
4. Full Investment Control = Adaptability
With prices climbing, traditional savings accounts or CDs can’t keep up. In a Solo 401(k), you can diversify your holdings into assets that historically outpace inflation, including:
Stocks and ETFs
Real estate investment trusts (REITs)
Treasury Inflation-Protected Securities (TIPS)
Commodities and gold ETFs (if your plan provider allows it)
This investment flexibility lets you pivot your strategy as the economy shifts—something most employer-sponsored plans don’t offer.
5. It Encourages Disciplined Saving
When the price increases, it makes everything feel urgent, long-term saving is often the first thing to get cut. A Solo 401(k) flips that.
Because you have a high contribution room and real tax benefits, the Solo 401(k) incentivizes saving now to benefit later. The structure builds good habits, especially when paired with automated contributions.
6. It Shields You from Future Uncertainty
Will Social Security be enough? Will your pension keep up with inflation? What if your business slows down?
With a Solo 401(k), you’re not leaving your retirement to chance. You’re actively building a personalized plan that adjusts to your income, tax situation, and long-term goals.
It’s one of the few tools where you can have both control and growth potential.
7. Flexibility for Changing Economic Conditions
One of the key advantages of a Solo 401(k) is its adaptability. Economic conditions are constantly evolving, and with price increases becoming a longer-term issue rather than a temporary spike, your retirement plan must be able to adapt as well.
If you experience an income surge in a strong year, you can maximize your contributions. In leaner times, you can scale back without penalty. This built-in flexibility is especially important for entrepreneurs, gig workers, and consultants whose income isn’t always predictable.
Moreover, your Solo 401(k) isn’t bound by employer-chosen funds. You can make strategic decisions about what to invest in based on price increase trends, market performance, or new sectors like energy, technology, or global funds.
8. Business Tax Benefits
Another bonus? Your employer contributions (the business portion) are tax-deductible as a business expense. That means you’re reducing your current year’s taxable income and building your retirement nest egg. In a high-inflation environment, keeping more of your money working for you today matters more than ever.
Suppose you’re filing as an LLC, S-Corp, or sole proprietor. In that case, you can consult with a tax advisor to optimize how much of your income you designate as owner compensation vs. employer contribution. This strategy ensures you benefit from both immediate savings and long-term growth.
Inflation-Proof Your Future
Inflation may be out of your control, but your retirement plan isn’t.
By opening and contributing to a Solo 401(k), you’re taking a proactive step to:
Outpace inflation
Reduce tax drag
Build long-term, flexible wealth
Whether your income is stable or seasonal, a Solo 401(k) lets you protect today’s income from tomorrow’s prices.
Visit www.survival401k.com for more information!
1. Higher Contribution Limits = Faster Growth
When inflation rises, you need more money saved to maintain your purchasing power. A Solo 401(k) allows much higher contributions than traditional IRAs:
Traditional IRA cap: $6,500 ($7,500 if 50+)
Solo 401(k): Up to $66,000/$73,500 depending on age and income
That means you can put more money to work now, letting it grow and compound over time—a powerful advantage when every dollar will be worth less in the future.
2. Tax Deferral Multiplies Your Money in Real Terms
One of the most underappreciated benefits of tax-deferred accounts is their compounding potential. When you contribute pre-tax dollars, you reduce your taxable income today and let those funds grow without taxes taking a bite each year.
When prices are high, the last thing you want is to lose more to taxes. A Solo 401(k) lets you invest gross income, defer taxes until retirement (when you may be in a lower bracket), and potentially beat price increases with market returns.
3. Roth Option Protects Your Purchasing Power
Worried about future tax rates? You’re not alone. That’s why the Roth Solo 401(k) option is so powerful.
With a Roth Solo 401(k):
You pay taxes today on your contributions
But your earnings grow tax-free
And you withdraw them tax-free in retirement
This is an ideal inflation hedge if you believe taxes and prices will be higher later. You lock in today’s rates and preserve the full spending power of your retirement withdrawals.
4. Full Investment Control = Adaptability
With prices climbing, traditional savings accounts or CDs can’t keep up. In a Solo 401(k), you can diversify your holdings into assets that historically outpace inflation, including:
Stocks and ETFs
Real estate investment trusts (REITs)
Treasury Inflation-Protected Securities (TIPS)
Commodities and gold ETFs (if your plan provider allows it)
This investment flexibility lets you pivot your strategy as the economy shifts—something most employer-sponsored plans don’t offer.
5. It Encourages Disciplined Saving
When the price increases, it makes everything feel urgent, long-term saving is often the first thing to get cut. A Solo 401(k) flips that.
Because you have a high contribution room and real tax benefits, the Solo 401(k) incentivizes saving now to benefit later. The structure builds good habits, especially when paired with automated contributions.
6. It Shields You from Future Uncertainty
Will Social Security be enough? Will your pension keep up with inflation? What if your business slows down?
With a Solo 401(k), you’re not leaving your retirement to chance. You’re actively building a personalized plan that adjusts to your income, tax situation, and long-term goals.
It’s one of the few tools where you can have both control and growth potential.
7. Flexibility for Changing Economic Conditions
One of the key advantages of a Solo 401(k) is its adaptability. Economic conditions are constantly evolving, and with price increases becoming a longer-term issue rather than a temporary spike, your retirement plan must be able to adapt as well.
If you experience an income surge in a strong year, you can maximize your contributions. In leaner times, you can scale back without penalty. This built-in flexibility is especially important for entrepreneurs, gig workers, and consultants whose income isn’t always predictable.
Moreover, your Solo 401(k) isn’t bound by employer-chosen funds. You can make strategic decisions about what to invest in based on price increase trends, market performance, or new sectors like energy, technology, or global funds.
8. Business Tax Benefits
Another bonus? Your employer contributions (the business portion) are tax-deductible as a business expense. That means you’re reducing your current year’s taxable income and building your retirement nest egg. In a high-inflation environment, keeping more of your money working for you today matters more than ever.
Suppose you’re filing as an LLC, S-Corp, or sole proprietor. In that case, you can consult with a tax advisor to optimize how much of your income you designate as owner compensation vs. employer contribution. This strategy ensures you benefit from both immediate savings and long-term growth.
Inflation-Proof Your Future
Inflation may be out of your control, but your retirement plan isn’t.
By opening and contributing to a Solo 401(k), you’re taking a proactive step to:
Outpace inflation
Reduce tax drag
Build long-term, flexible wealth
Whether your income is stable or seasonal, a Solo 401(k) lets you protect today’s income from tomorrow’s prices.
Visit www.survival401k.com for more information!
Inflation isn't just a headline—it's a daily reality. From gas to groceries, rising costs are eroding the purchasing power of every dollar earned. For solo business owners and self-employed individuals, the pinch is especially hard. You’re not only managing household expenses, but also funding your benefits, health care, and retirement.
So, how do you protect yourself? More specifically, how do you make sure your future dollars don’t shrink before you can even use them?
Enter the Solo 401(k). It’s not only one of the most powerful retirement vehicles for self-employed people—it's also one of the best long-term defenses against inflation.
Why Inflation Hurts More When You're Self-Employed
Traditional employees often benefit from cost-of-living adjustments, matched retirement plans, and subsidized healthcare. As a solo business owner, you’re flying solo in more ways than one.
Inflation impacts:
The cost of running your business (materials, advertising, software)
The cost of living (housing, groceries, fuel)
And your ability to save for retirement in today’s dollars while prices continue rising
Without a solid savings plan, inflation silently eats away at your future lifestyle. What feels like enough today may fall drastically short 20 years from now.
How the Solo 401(k) Works
The Solo 401(k), also known as an Individual 401(k), is a retirement plan built specifically for self-employed individuals or business owners with no full-time employees (except a spouse).
Key benefits:
High contribution limits: Up to $66,000 in 2023 (or $73,500 if age 50+)
Dual role savings: Contribute as both the employee and the employer
Tax-deferred or Roth options: Choose how you want to be taxed (now or later)
Investment control: Choose where your money goes—stocks, ETFs, mutual funds, even real estate
These features give you flexibility and firepower. But let’s zoom in on why it specifically outshines other options when it comes to inflation.
“Inflation eats savings, unless your plan is built to outrun it. A Solo 401(k) gives you that edge.”
Garrett Clark
Director of Sales
1. Higher Contribution Limits = Faster Growth
When inflation rises, you need more money saved to maintain your purchasing power. A Solo 401(k) allows much higher contributions than traditional IRAs:
Traditional IRA cap: $6,500 ($7,500 if 50+)
Solo 401(k): Up to $66,000/$73,500 depending on age and income
That means you can put more money to work now, letting it grow and compound over time—a powerful advantage when every dollar will be worth less in the future.
2. Tax Deferral Multiplies Your Money in Real Terms
One of the most underappreciated benefits of tax-deferred accounts is their compounding potential. When you contribute pre-tax dollars, you reduce your taxable income today and let those funds grow without taxes taking a bite each year.
When prices are high, the last thing you want is to lose more to taxes. A Solo 401(k) lets you invest gross income, defer taxes until retirement (when you may be in a lower bracket), and potentially beat price increases with market returns.
3. Roth Option Protects Your Purchasing Power
Worried about future tax rates? You’re not alone. That’s why the Roth Solo 401(k) option is so powerful.
With a Roth Solo 401(k):
You pay taxes today on your contributions
But your earnings grow tax-free
And you withdraw them tax-free in retirement
This is an ideal inflation hedge if you believe taxes and prices will be higher later. You lock in today’s rates and preserve the full spending power of your retirement withdrawals.
4. Full Investment Control = Adaptability
With prices climbing, traditional savings accounts or CDs can’t keep up. In a Solo 401(k), you can diversify your holdings into assets that historically outpace inflation, including:
Stocks and ETFs
Real estate investment trusts (REITs)
Treasury Inflation-Protected Securities (TIPS)
Commodities and gold ETFs (if your plan provider allows it)
This investment flexibility lets you pivot your strategy as the economy shifts—something most employer-sponsored plans don’t offer.
5. It Encourages Disciplined Saving
When the price increases, it makes everything feel urgent, long-term saving is often the first thing to get cut. A Solo 401(k) flips that.
Because you have a high contribution room and real tax benefits, the Solo 401(k) incentivizes saving now to benefit later. The structure builds good habits, especially when paired with automated contributions.
6. It Shields You from Future Uncertainty
Will Social Security be enough? Will your pension keep up with inflation? What if your business slows down?
With a Solo 401(k), you’re not leaving your retirement to chance. You’re actively building a personalized plan that adjusts to your income, tax situation, and long-term goals.
It’s one of the few tools where you can have both control and growth potential.
7. Flexibility for Changing Economic Conditions
One of the key advantages of a Solo 401(k) is its adaptability. Economic conditions are constantly evolving, and with price increases becoming a longer-term issue rather than a temporary spike, your retirement plan must be able to adapt as well.
If you experience an income surge in a strong year, you can maximize your contributions. In leaner times, you can scale back without penalty. This built-in flexibility is especially important for entrepreneurs, gig workers, and consultants whose income isn’t always predictable.
Moreover, your Solo 401(k) isn’t bound by employer-chosen funds. You can make strategic decisions about what to invest in based on price increase trends, market performance, or new sectors like energy, technology, or global funds.
8. Business Tax Benefits
Another bonus? Your employer contributions (the business portion) are tax-deductible as a business expense. That means you’re reducing your current year’s taxable income and building your retirement nest egg. In a high-inflation environment, keeping more of your money working for you today matters more than ever.
Suppose you’re filing as an LLC, S-Corp, or sole proprietor. In that case, you can consult with a tax advisor to optimize how much of your income you designate as owner compensation vs. employer contribution. This strategy ensures you benefit from both immediate savings and long-term growth.
Inflation-Proof Your Future
Inflation may be out of your control, but your retirement plan isn’t.
By opening and contributing to a Solo 401(k), you’re taking a proactive step to:
Outpace inflation
Reduce tax drag
Build long-term, flexible wealth
Whether your income is stable or seasonal, a Solo 401(k) lets you protect today’s income from tomorrow’s prices.
Visit www.survival401k.com for more information!