Retirement planning is among the top financial worries for Americans. The best way to help alleviate this anxiety is to become proactive about it and the best time to start is now. Being wise with your investments can offer several advantages such as tax-free and aggressive growth, so here are a few tips to consider when taking action with your retirement.
- There are several types of IRA plans out there with the most common ones being a Traditional, Roth, and Simplified Employee Pension. A person can have more than one IRA plan to choose from depending on age and income.
- After choosing which IRA best suites your needs, there is a variety of products such as lower risk savings accounts, certificates of deposit (CDs), or higher risk stocks, bonds, and mutual funds to choose from. Again choose the plan that is best for you and gauge whether you are willing to take a risk of losing more for a higher return or just stay with the slow and steady return.
- Cds and online savings accounts offer a more secure growth for your retirement. They are less risky or you could also roll existing IRAs , 401ks, or 403bs into a single IRA for stable rates.
- Consider using an online bank instead of a branch bank as those online banks without a physical location can possibly offer lower rates as well as competitive rates.
- Make sure you are aware of the restrictions on any IRA you choose. Your tax professional can help you with this. Remember straightforward retirement products are better as they can help you reach your retirement goals faster.
- Directly rolling over you retirement is usually easy and doesn’t have tax withholdings or reporting requirements of a personal withdrawal transaction, so don’t be afraid to move you retirement money around to maximize its return.
This article is not intended to give legal advice and you should contact your personal accountant for any such advice.
Distinctive Properties, Inc.