What You’ll Learn
- Why traditional financial advice doesn’t fit doula life
- A simple retirement option that works for self-employed birth workers
- How to set it up without big fees or confusing paperwork
- Why talking to a financial professional matters for your long-term security
Why Most Retirement Advice Doesn’t Work for Doulas
If you have ever tried to figure out how to save for retirement, you have probably run into confusing acronyms, contribution limits, and advice written for people with a traditional 9-to-5 job.
Birth work rarely fits that mold. Many doulas work as independent contractors, run solo businesses, or rely on multiple income streams. There is no HR department offering a 401(k), no matching contributions, and often no paid time off.
Some doulas keep a day job for the health insurance or retirement benefits that come with it. That can be a smart bridge while building your doula business. But if this is your main source of income, you need to think ahead about how you will prepare for the future.
Not every doula has a partner with benefits to fall back on. Planning for your own financial security is an important part of making birth work sustainable.
A Retirement Option That Fits Self-Employed Doulas
One of the simplest and most flexible options for self-employed professionals is a SEP IRA (Simplified Employee Pension Individual Retirement Account).
You can read more about SEP IRAs directly from the IRS here: IRS Overview of SEP Plans.
Here is why a SEP IRA fits birth work well:
- Simple setup: You can open one online with a reputable company such as Vanguard, Fidelity, or Charles Schwab.
- Flexible contributions: You choose how much to contribute each year based on what you earn.
- Tax benefits: Contributions can lower your taxable income, and your investments grow tax-deferred until you withdraw them.
- No complicated paperwork: If you are the only person in your business, it is easy to manage.
You can contribute up to 25 percent of your net self-employment income each year, up to the annual limit set by the IRS. That is often higher than what you could put into a standard IRA.
How to Set Up a SEP IRA
- Choose your provider. Look for an established company that allows you to open an account online. Vanguard, Fidelity, and Schwab are all reputable options.
- Complete the setup form. You will enter basic information about your business, even if you are a sole proprietor.
- Add money when you can. You can contribute any amount, at any time, up until the tax filing deadline for that year.
- Select an investment. A low-cost index fund or target-date fund is a simple place to start. If you are unsure, you can begin with cash contributions and get help later.
You do not need a financial adviser to open a SEP IRA, but it can be helpful to talk to one if you want guidance.
Other Retirement Accounts to Explore
Every doula’s situation is different. Here are a few other options to ask about when you speak with a financial professional:
- Solo 401(k): Allows higher contributions than a SEP IRA but involves more paperwork.
- Traditional IRA or Roth IRA: Open to anyone with earned income, though the contribution limits are smaller.
- HSA (Health Savings Account): If you qualify, this can double as a tax-advantaged backup savings tool for future health expenses.
You can learn more about each type from the U.S. Department of Labor.
Why This Matters for Doulas
For doulas, retirement planning can feel like something you will get to “later.” The problem is, later comes more quickly than we think. Even small, irregular contributions can make a big difference over time.
Think of it as another form of support – only this time, you are supporting your future self.
This is also why you should have a professional who understands self-employment review your plan. Talk with a CPA, accountant, or financial adviser about what options fit your income and tax situation best. You do not need to have all the answers, but you do need to start asking questions.
The sooner you plan, the better prepared you will be to continue doing the work you love without financial stress later in life.
Keep the Conversation Going
Financial security is a part of sustainable birth work. Join the Doula Business Community to connect with other doulas who are learning how to make their businesses work for today and for the future.
