What Are the Best Retirement Plans Available Today?

With consolidation loan stafford student iffy future of the Social Security system constantly in the news, people are becoming more concerned about their retirement accounts. They want Rhode Island Lemon Laws know what the best retirement plans are for people in their position. Should they stay with their company sponsored 401K plan; or opt for an individual IRA account?

If they choose an IRA, should it be a traditional account or a Roth account? And, if the opt for an IRA where should they invest their money? This article Paxil provide you with the information you need to decide which account is best for you. Then, with the help of your financial counselor, you will be able to make the right choice.

Let's talk a little about the retirement plans that are offered by employers. In the distant past, these were traditionally pension plans. But, today most companies choose to offer 401k plans. Both employee contributions and employer matching are put into these accounts. There are limits on the amount that contributed each year and all of the money is put in tax-deferred.

This means that you do not pay taxes until the money is withdrawn. Usually, the employer supplies a list of possible investment choices and then the employee makes their choice from this list. The list is made up of a selection of stocks, bonds and municipal funds and usually provides a person with an 8% rate of return annually depending on the choice and on the market.

But some people aren't covered by their employers or they work for themselves so an employer backed 401k is not an option for them. These people also want to know about the best retirement plans available for them. For individuals, the choice is usually found in either a traditional IRA account or a Roth IRA. There are advantages and disadvantages to both of these types of account.

Traditional IRA's are available to people within certain income guidelines. In 2008, for a married couple filing jointly this would mean up to $108,000 per year. The money put into and the income earned by the investments is tax deferred. What this means is that you do not have to pay taxes until you take the money out. However, if you withdraw the funds before you are 59 you could pay an additional 10% tax penalty. Another disadvantage to this type of account is that you have to start withdrawing a government mandated minimum amount each year after you reach the age of 70 and you must stop contributing at that time as well.

This is one of the reason people find that a Roth IRA is among the best retirement plans available to them With a Roth IRA, you debt consolidation loan student keep your money in the account and invest in the account for as long as you want. You can earn more and still qualify as well. For a married couple filing a joint return, this means that they could earn up to $161,000 per year. Another difference between a traditional IRA and a Roth IRA is that you pay taxes on the money before you put it into the account; this means that when you go to withdraw it you do not have to pay taxes again. Many people find that this way saves them the most money because taxes generally rise each year.

If you opt for either the traditional IRA or the Roth IRA, the next step is deciding where to invest the money in the account. You can choose from traditional financial instruments like stocks, bonds or municipal funds, or; if you wish to realize a rate of return that can be almost double that of these traditional instruments; you can invest in real estate. Many people find the latter to be a better, safer choice. You can even chose to roll over your company sponsored 401k plan into an IRA invested in real estate and realize this increased rate of return too!.

Preparing for your future, no matter how late in life, is an important way to protect yourself especially in light of an iffy Social Security system. Choose from among the best retirement plans, today!

Rich Eng is a leading executive at a Fortune 50 health care services company and a successful real estate investor who has grown his retirement funds substantially on a part time basis. Visit his website to learn about smarter-ira-investingself-investing IRA assets for maximum returns.