Invest Right Now For Retirement

February 23, 2011

in Financial, Investment, Retirement

One and Two Half Dollars
Creative Commons License photo credit: EricGjerde
Even if retirement is a distant need for you, pretty soon it could be creeping up on you. However near or far for you, you must start saving for it now. Still, putting money aside for retirement isn’t so easy with the rising cost of living and the uncertainty of social security. It’s up to you to invest for your retirement, as opposed to wishing and hoping for it!

Start with taking a look at the retirement plan available at your workplace. At one time, these plans were doing very well. However, after the huge changes in the economy and all that followed, investors aren’t as secure in their company sponsored retirement plans any longer. If  you decide not to invest in the company retirement plan, there are still other choices.

First, remember that you can always invest in mutual funds, stocks, bonds, certificates of deposit, and money market accounts. Your investments can grow to be used for in retirement, although you won’t have retirement tax advantages.It’s completely your choice if you have a brokerage account you intend to use for retirement.  Just simply let your funds grow overtime, and rolling over investments and letting your money your money grow.

Another option is to open an Individual Retirement Account (IRA).  IRA accounts are very popular because your funds are not taxed until money is taken out of the account. You may also be able to deduct your IRA contributions from the taxes that you are responsible for paying. An IRA can be opened at at many banks and discount brokers. In addition to the IRA is the ROTH IRA.  For the Roth account, you can’t deduct your contributions, but when you cash out, you don’t pay tax on the withdrawal. Roth IRAs are offered by brokerage houses and banks.

Another type of popular retirement account is the 401(k). The 401K is usually offered through your company, but if you have self employment income you may be able to open your own 401(k). Talk to an accountant or financial planner to learn more. Some other plans for the self employed are Keogh, SIMPLE and SEP-IRA accounts.

No matter which retirement investment you choose, at least be sure to choose one! Don’t wait to depend on social security, a company pension, or even winning the lottery! Take control by investing in it today!

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