Individual Retirement Accounts
Individual Retirement Accounts Information
Why start a retirement plan?
With modern technology and medicine, people are living longer than ever before. That sounds great, but it also means longer periods of retirement, during which you must pay for housing, food and more. It is important to start saving for retirement at an early age. Opening a retirement plan is a great way to invest in your future.
What types of retirement plans exist?
There are six main types of retirement plans. This plans are unsecured; your monies are invested in mutual funds composed of stocks, bonds and money market.
- Individual retirement account (IRA): This type of account allows you to contribute money, which is invested tax-deferred. Your gains can grow quicker since they are not taxed until you withdraw funds at retirement.
- Roth IRA: This plan differs from a regular IRA in one main way… contributions are made after tax. This means that funds within a Roth IRA are not taxed again. You can withdraw your funds before retirement without penalties.
- 401(k): This is an employer-sponsored retirement plan to which you can contribute a pre-tax portion of each paycheck. Contributing to a 401(k) lowers the amount of income you pay taxes on. Additionally, many employers offer matching programs as an employee benefit.
- Roth 401(k): This plan combines features of Roth IRA and 401(k). It is offered through employers, but contributions come from your after-tax salary. Like a Roth IRA, funds in the account are not taxed again.
- Simple IRA: This plan is like a 401(k) and is often offered by small businesses. Contributions come from pre-tax paychecks and money grows tax-deferred until retirement.
- SEP IRA: This plan works well for self-employed individuals, who can contribute part of their paychecks. Contributions can be deducted from income taxes. Plus, annual contribution limits are higher than many other retirement plans.
What retirement plan would be 100% safe?
- Fixed Index Annuity: This is a special class of annuities that yields returns on your contributions based on a specific equity-based "index." such as the S&P 500. It is not based solely on the stock market. With an Indexed Annuity there is a guaranteed minimum return, so even if the index does poorly, you will not lose any part of your retirement savings. In a Fixed Index Annuity, you make an initial deposit or periodic contributions (monthly, quarterly, annually). If you died, the balance of your account is paid to your Beneficiary. Annuities can be structured to give you income for the rest of your life. You can also withdraw funds if you have an immediate need for cash (replace the home air conditioner, a new roof, pay medical expenses, pay for nursing care). If you select a Qualified Annuity, your contributions would be tax deductible. If you select a Non Qualified or ROTH Annuity, when you withdraw the money, no taxes will be due on the principal. An Annuity is a financial contract, issued by a life insurance company. Not at risk from fluctuations of the economy.
Get started today! Let us help you star placing aside savings for your retirement in a 100% secured financial contract for a secured retirement income! Fill out a request form today, and let our agency illustrate an Annuity contract for you. All it takes is a few minutes to provide your information and start earning peace of mind that you are properly and safely saving for you retirement.
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