RETIREMENT-TARGETED INVESTING STRATEGY
Here is a terrible eternal truth - most people today are not prepared for their retirement. If you’ll take a look on statistics of social programs and some government financial plans – you’ll discover a horrible picture – a huge part of “baby-boomer” generation in going to starve at their elderly!
So, if you don’t want to join this club, one of smartest things you can do before your retirement – try to secure it! And one of the best ways to do it – to invest in it!
It sounds very simple, no? Not at all! Most of people trying to secure their retirement by SAVING MONEY BUT NOT INVESTING MONEY!
And nobody even think how stupid it is! Just imagine how long you should save money to get 500.000$ for retire! At the same time – right investment may bring you the same amount of money in a single year! You have to invest for your retirement, as opposed to saving for it!
As we can see today, people who believed in their company saving retirement plan now watching their money “gone with a wind of changes” – no company, no plans…
Take care of your financial future by investing in it today!
You can invest in stocks, bonds, mutual funds, real estate, certificates of deposit etc. Of course, your investment should be done only after deep evaluation of the field you going to invest in. The best way - to let your money grow overtime, and when your investments reach their maturity just reinvest them in any other field which brings more return at certain moment. System like this allows your money continue to grow progressively.
One of the most known and popular type of retirement account is the 401(k). It is a savings plan for retirement that is typically funded both by employee contributions, and by a matching contribution that is made by the employer. Contributions are typically made from the employee’s pre-tax salary, and these funds continue to grow on a tax-free basis until the point where they are withdrawn from the 401k account. 401(k’s) are typically offered through employers, but you may be able to open a 401(k) on your own. Remember - state governments are completely prohibited from offering their employees a 401k plan. If you interested to open this plan - you should speak with a financial planner or accountant to help you with this.
Opening an Individual Retirement Account (IRA) also may be an option. One of the advantages of IRA’s - your money is not taxed until you withdraw the funds. You may also be able to deduct your IRA contributions from the taxes that you owe. Most banks allow opening an IRA. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the investment in your account, but no federal taxes are owed when you cash out.
The Keogh plan is another type of IRA that is suitable for self employed people. Self-employed small business owners may also be interested in Simplified Employee Pension Plans (SEP). This is another type of Keogh plan that people find technically easier to administer.
Whichever retirement investment you choose, just make sure you choose one! It is never too late to start to invest and secure your own future!
