A revealing statistic shows that in the United States people have most of their net worth in their homes. The home captures wealth in spite of people.

This makes sense. Unlike bank accounts, stock portfolios, or most other places you can store your funds, you cannot quickly withdraw money from your home. So, while your other accounts ebb and flow, depending on immediate needs, your home captures wealth and imprisons it for the long term. Thinking long term is a good thing.

If you have no employees and you or you and your spouse are the owners of a business, new rules make the solo 401(k) another highly desirable capture mechanism for the following reasons:

You get an individual tax deduction for the money you put into the plan.

Your business gets a tax deduction for the money it puts into the plan.

The money in the plan grows tax-deferred.

Strict rules limit when you can touch (tamper with) it.

This adds up to a capture mechanism with great long-term benefits.

If you have employees, you need to consider them in your plan design; but if you don’t, you need consider only yourself.

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