Retirement Investing – What Type Of Investments

June 23rd, 2009 by MilesVickstrom

Retirement may be a long way off for you or it might be right around the corner. No matter how near or far it is, you have absolutely got to start saving for it now. However, saving for retirement is not what it used to be with the increase in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!

Lets start by taking a look at the retirement plan offered by your company. Once upon a time, these plans were quite sound. However, after the Enron upset and all that followed, people are not as secure in their company retirement plans anymore. If you choose not to invest in your companys retirement plan, you do have other options.

First, you can invest in stocks, bonds, mutual funds, certificates of deposit, and money market accounts. You do not have to state to anybody that the returns on these investments are to be used for retirement. Just simply let your money grow overtime, and when certain investments reach their maturity, reinvest them and continue to let your money grow.

You can also open an Individual Retirement Account (IRA). IRAs are quite popular because the 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. An IRA can be opened at most banks. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the money that you are investing in your account, but when you cash out, no federal taxes are owed. Roth IRAs can also be opened at a financial institution.

Another popular type of retirement account is the 401(k). 401(ks) are typically offered through employers, but you may be able to open a 401(k) on your own. You should speak with a financial planner or accountant to help you with this. 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 typically find easier to administer than a regular Keogh plan.

Whichever retirement investment you choose, just make sure you choose one! Again, do not depend on social security, company retirement plans, or even an inheritance that may or may not come through! Take care of your financial future by investing in it today.

Chris Peterson
http://www.articlesbase.com/investing-articles/retirement-investing-what-type-of-investments-93847.html

Plan Retirement Early!

4 Responses

Pomi Momi♡ Says:
June 23rd, 2009 at 8:51 am
Retirement??? WOW…?
My husband and I just found out recently that his last job of 13yrs, one he was laid off from abt 3 yrs ago that he has a retirement type account thru Smith Barney of about $20000.00. We came across this totally by accident as we were going thru some of our legal papers. We moved abt 3 yrs ago and Smith Barney did not have our forwarding address so we have not received anything.
I am not good at investing period, all of our other investments/retirements are thru our jobs and are handled that way – I have no idea what to do with this money? I want to roll it over into something but not sure exactly what? Any suggestions???
ww2db Says:
June 23rd, 2009 at 1:53 pm
It really depends on your age, expected retirement age, and whether you are ok with risk. But regardless of that, first thing you should do is to roll it over to a Rollover IRA account. Taking out the cash would cost you a lot in taxes.

If you are going to retire soon, like within 5 years, I definitely recommend you invest in something that is low risk in your new Rollover IRA account, such as government funds, bond funds, or CDs if they are available.

If you are not retiring soon, and is somewhat ok with taking risk, then index funds are great options, especially with the relative low market price right now.

If you're ok with a higher risk, and have time on your side, then go with something riskier — specialty funds (real estate is a steal right now, or how about energy companies?), mid-cap or small-cap funds, or even individual stocks.

The best advice, though, is to talk to a professional. Whatever firm you open your Rollover IRA account at should offer this kind of service. Yes, I generally know what I'm doing, given I've traded stocks and funds since 1999 both as a day trader as well as in my retirement accounts, but I'm by no means trained in this topic… That's my disclaimer Hope I brought up some topics for you to research into that you didn't know of, though.
References :
http://dev-notes.com
Billie Says:
June 23rd, 2009 at 1:55 pm
Just contact them.
References :
jebediabartlett Says:
June 23rd, 2009 at 1:57 pm
You want to " roll it over"… log on to Fidelity or another broker… get a phone number and talk to a rep…they can handle 90% of the paperwork… it will take a few weeks or so, but you will end up with a nice traditional IRA that you can manage on-line. The same procedure as your 401 plans through. work…picking and selecting funds …BUT…the amount of available funds will be in the thousands !! and if you are so inclined, you can trade stocks or ETFs in the new IRA.
Seeing as it is " found money"…you may want to put a good deal of it into " aggressive" funds , maybe some sectors that are doing well: international , metals/materials, agricultural chems…..and get some great returns for awhile.
Otherwise just look at your 401s and see which of your funds are doing well…and make them your IRA selections.
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Retirement Investing – What Type Of Investments

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