Retirement Accounts are savings plans that allow investors to increase the size of their savings for retirement while taking advantage of special tax benefits.
How Retirement Planning Can Help You
- Your investments are potentially tax-deductible.
- You can defer paying taxes on your investment income and gains.
- You can take control of your money that is currently held in a former employer’s retirement plan.
IRA Contributions Can Be Made in Two Ways
- By moving your money in a former employer’s retirement plan, such as a 401(k), into a new or existing IRA. (IRA Rollover).
- By making annual contributions to a new or existing IRA out of your employment income.
Elements of a Good Retirement Plan
- Provide you with 70 to 90 percent of your current gross income.
- Take into account the obstacles that you may face after retirement.
- Allow you to take advantage of the potential for growth over time.
- Be diversified in its investments, by balancing growth and income with your own tolerance for risk.
- Take advantage of income tax-deferred savings.