Investing in some retirement accounts are more beneficial than others. There are several plans to take advantage of that will ensure you have plenty of money for you at the end of retirement if you save as much as you can in each of them. If you are looking for a reliable trusted brokerage firm that was one of the first try going to www.vanguard.com
Time Is Money
1. Roth IRA – Don’t wait to start saving for retirement. Start saving today. Open a Roth IRA account which allows you to put in $4000 tax free income for which you can take out the minute you turn 59.5 years old. Every dollar you put in will earn interest and when you take money out you don’t have to pay taxes on that either! For more information on Roth IRAs visit www.rothira.com/
2. 401(k) plans – A great way to save and earn is to engage in your employer’s or future employer’s 401(k) plan. Figure out how much money you can put into the account and often the employer will match a certain percentage of the money you put in. This money is tax deferred so that means when you put money into it it won’t be taxed so it will grow at an exponential rate, however, when you take money out that lump sum is then taxed.
3. KEOUGH plan – If you graduated with an entrepreneurial degree, or if you are self-employed, you could be eligible for a Keough plan retirement program. Keough plans have many important rules and restrictions, and you need to keep the IRS up to date every year to make sure that you are adhering to the rules and regulations of the plan. If you are self-employed and do not have a 401(k) it is definitely worth the hassle to start up a Keough plan. Contact your bank or the IRS to file for this type of plan.
4. Some of these plans will allow you to invest your own money. Think long-term growth investment decisions for these plans. A good way to invest money for long-term growth is a mutual fund that tracks an index. Ticker symbol ‘VFINX’ is a good example of a Vanguard mutual fund that tracks the S&P 500 index. The avg. returns over a 10 year span is around 10% per year. That means in ten years you’ve doubled your money.
It’s steady savings in small amounts that add up to large bank accounts.