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Retirement: Your Investment Options

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Are you crossing your fingers that your retirement is on track? If you’re unsure of your strategy, schedule a meeting with a financial advisor as soon as possible! The truth is, if you’re out of school and getting a paycheck, you want to be contributing to a retirement account—no matter how young you are.
 
If you’re already saving, have you reviewed your 401(k) or IRA lately? It’s possible that the plan you chose 5 years (or more!) ago isn’t the best option for you now.
 
Here’s an overview of the numerous ways to grow your nest egg:
 

  • Employer-sponsored 401(k)—Arguably the most popular, contributing to this plan is one of the easiest ways to set aside pre-tax dollars for retirement. It’s particularly appealing if your employer offers a company match—free money! Each plan has a range of options to consider, including how to diversify your investments and the level of risk assumed with each portfolio.
     

  • SEP or Simple IRA—Primarily used by self-employed workers and small business owners, these accounts are fairly easy to set up, require less paperwork and may necessitate a business contribution for those who meet certain requirements.
     

  • Traditional IRA—Available to anyone under the age of 70.5 earning taxable income, this money grows tax-deferred. Contributions are tax deductible while withdrawals in retirement are taxed at normal income tax rates. Since there are no income limits, you can contribute to a 401(k) at the same time, but deductions may differ depending on your salary. Distributions are required after age 70.
     

  • Roth IRA—Available to anyone earning taxable income, regardless of age. Contributions are made on an after-tax basis. So, earnings and withdrawals are tax-free, subject to certain requirements. While income limits do apply, there are no 70.5 mandatory distribution requirements.
     

  • Mutual funds, annuities or individual stocks and bonds—These choices can help you work toward your retirement goals individually or in conjunction with other savings options. Since it can be confusing to navigate the many choices, seek assistance from a financial advisor.

 
Your financial advisor has the knowledge to help you sort through the potential benefits and limitations of each investment option and portfolio strategy. Interested in more on retirement? Download our eBook, Finding the Right Path to Your Next Big Adventure. Learn more about:
 

  • What questions you should be asking.

  • Why it’s so important to start early.

  • What to do if you’re starting later in life.

  • How to plan for emergencies.

  • How to manage your retirement income.


 

Download my eBook

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