The traditional 401k system in the U.S. limits employees to conventional investments like stocks and bonds, leaving many frustrated by their inability to diversify into alternative assets such as real estate, cryptocurrencies, or private equity. While the Solo 401k offers a legal workaround, its complexity and eligibility requirements create a barrier for self-employed individuals and side hustlers who could benefit from it. One way to address this gap could be a service that simplifies the setup of Solo 401ks while facilitating alternative asset investments within IRS guidelines.

How It Could Work

The service could guide users through establishing a qualifying business entity (like an LLC or sole proprietorship) and a Solo 401k plan, allowing them to contribute as both employer and employee. It might also partner with alternative asset platforms to offer curated investment opportunities, ensuring compliance with IRS rules. For example:

• A freelancer could set up a Solo 401k to invest in rental properties or gold.
• An employee with a side gig could use it alongside their employer-sponsored 401k for tax advantages.

Revenue could come from one-time setup fees, ongoing account management, or commissions from partnered investment platforms.

Standing Out from Competitors

Existing providers like Rocket Dollar or MySolo401k focus broadly on self-directed retirement plans. This idea could differentiate by:

• Niche targeting: Specifically serving side hustlers and employed individuals with part-time businesses.
• Simplified onboarding: Using tech to streamline entity formation and IRS paperwork.
• Curated alternatives: Offering vetted, compliant access to non-traditional investments.

Getting Started

A minimal version might begin with an educational platform explaining Solo 401ks, paired with a free eligibility checker. Early phases could focus on paid setup assistance, later expanding into investment partnerships and tax optimization services. Testing assumptions—like demand among side hustlers or willingness to pay for setup help—could involve landing page signups or discounted pilot offers.

By demystifying Solo 401ks and unlocking alternative investments, this approach could appeal to a growing segment of the workforce seeking flexibility and tax efficiency in retirement planning.