Individual Retirement Account

Let’s take a look at the retirement plan that your company offers. These plans used to be very sound. However, you are no longer covered

by the company’s retirement plans following the Enron scandal and everything that followed. You do have other options if you decide not to participate in your company’s retirement plan.

Let’s begin by pointing out that money market accounts, stocks, mutual funds, certificates of deposit, and bonds are all options for investing. You are not required to inform anyone that you intend to use the returns on these investments for your retirement. Simply allow your money to increase in value over time. When certain investments mature, reinvest them and continue to let your money increase in value.

An Individual Retirement Account (IRA) can also be opened. Because the money in an IRA is not subject to tax until it is withdrawn, they enjoy a lot of popularity. Contributions to your IRA may also be eligible for a tax deduction. Most banks allow for the opening of an IRA. A more recent type of retirement account is a ROTH IRA. You pay taxes on the money you invest in your Roth account, but you don’t pay any federal taxes when you cash out. A financial institution can also be used to open a Roth IRA.

The 401(k) is yet another popular type of retirement account. Although 401(k)s are typically provided by employers, you may be able to open one on your own. For assistance with this, you should consult an accountant or financial advisor. Another type of IRA for self-employed individuals is the Keogh plan. Simplified Employee Pension Plans (SEP) may also be of interest to owners of small businesses who work for themselves. Aside from a regular Keogh plan, this is another type of Keogh plan that most people find easier to follow.

Make sure you choose a retirement investment, no matter what! Again, do not rely on Social Security, employer-sponsored retirement plans, or even a possible inheritance! Invest now to take care of your financial future.