If you’re a solo entrepreneur, you probably purchased health insurance shortly after starting your business. You may have even researched life and disability insurance policies. But setting up a retirement plan, too complicated, right? He can be, if you want invest in real estate, cryptocurrencyor other assets that you cannot buy through a brokerage.
Ocho is a company that helps solopreneurs build wealth by helping them create Single 401k plans and learn about money through video lessons.
If you own a business and want to learn more about the benefits of a 401k for your future, here’s what you need to know about Ocho.
- Easy to set up Solo 401k for business owners, freelancers and freelancers.
- Invest in traditional assets such as stocks, ETFs and bonds or alternatives like real estate and crypto
- Pay one flat rate for all your 401k management
What is Ocho?
East Ocho a single 401k platform specifically designed to help business owners maximize tax-efficient retirement contributions. Ocho takes care of the administration and paperwork so you can focus on building wealth outside of your business.
Ocho charges a flat fee each year, and this gives solopreneurs the freedom to maximize their individual 401k contributions year after year.
Ocho allows you to invest in conventional (stocks, bonds, ETFs and other brokerage house assets) and alternative assets. It even brings a “checkbook” feature that will allow you to invest in real estate (including paying for repairs) through your 401k.
What does it offer?
Ocho lets you create and manage your Solo 401k account through a portal, so you can focus on building your investments and your business.
Flat rate pricing for a solo 401k
Ocho charges $299 per year to handle the paperwork and administration of your solo 401k.
While some companies (including Charles Schwab and Fidelity) have no overhead, Ocho includes a flat fee of $299. However, they do offer a few extras like the checkbook feature and opportunities to invest in alternatives. Ocho also has a video subscription with separate fees.
Invest in alternatives
Ocho links a checkbook to your 401k, so you can fund any investment, make any trade, or even pay the plumber if your investment property’s toilet leaks.
Manage administration and paperwork
With Ocho, you don’t have to deal with the paperwork that characterizes contributions and reports balances to the IRS. Ocho handles the administrative side. You simply declare your contributions when you file your tax return.
Maximize your 401k
Not sure how much you can save for your retirement? Ocho helps you determine the maximum allowable contribution based on your income in a given year.
Not everyone can contribute Maximum contribution of $66,000 in 2023, but you may be able to contribute more than you think. Ocho helps you determine how much you can contribute as an employee and employer.
Choose between Roth and traditional
You can choose 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 Roth Mega Backdoor can be a huge advantage during some of your highest earning years.
Ocho Money Video Course
In addition to the Ocho Money account, you can purchase a $299 video subscription service (Ocho Money) which 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 fee of $299 for its flagship 401k solo. If you have W-2 employees who work more than 1,000 hours per year, you cannot use Ocho’s product. The company does not charge any other fees, but the investments you buy may have fees.
In addition to the $299 fee for an account, you will pay $299 per year 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 bottom right corner of the site. People respond to messages during standard East Coast business hours.
You can also contact Ocho by emailing firstname.lastname@example.org.
Ocho is owned by Vibes Company Inc. Vibes Company is headquartered at 10 Grand Street, Brooklyn, NY, 11249.
How does Ocho compare?
However, solopreneurs looking to invest in alternative investments cannot find a better deal than Ocho. The company is created to facilitate alternative investment.
Unlike some of the other solo 401k providers, Ocho provides a bank account, brokerage, and checkbook, so you can manage your investments directly. It even has great charts and dashboards so you can understand your investment needs.
On your mind
Fees for Robo-Advisor wallets
How do I open an Ocho account?
To open an Ocho account, you must provide your email address and create a password. This will give you an online account, but not access to investment options.
To access investment options, you must confirm your eligibility (provide your name, social security number and address, and answer questions about your business).
As long as you’re eligible, you can have access to an Ocho account in less than 15 minutes from start to finish. In some cases, Ocho may need additional information to verify your eligibility.
Is it safe and secure?
Ocho requires multi-factor authentication and uses industry standard encryption and security policies. It has not suffered any privacy or security breaches in the past.
The only concern is the size of Ocho. As a relatively new entrant, Ocho has millions under management rather than billions like many other financial institutions.
Its customer service and quality may remain strong as it scales or deteriorate. If you’re reluctant to use startups to manage your money, you might want to wait until Ocho has a more established presence.
Is it worth it?
Although the financial experts at Ocho probably have a lot of wisdom, the Ocho Money video subscription doesn’t seem like a good deal. It’s the same price as some premium finance courses that are more carefully curated for specific audiences.
Of course, Ocho gives you a few free videos to sample, so you can try them out before you buy. If Ocho’s videos give you an idea of $1,000, the subscription will pay for itself three times.
On the other hand, Ocho Solo 401k account is a slam dunk for business owners who want invest in alternatives.
Ocho simplifies alternative investing through solo 401k with very low overhead. You can use Ocho to your advantage for more freedom and flexibility with your investment options.
Features of Ocho