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Investment Vehicle Options

There are a number of types of retirement investment options available such as:

IRA/Roth IRA Opportunities 401(k) Plan 403(b) Plan
Defined Benefit Pension Plan Keogh Plan Annuities

IRA/Roth IRA Opportunities
Individual Retirement Account (IRA) may help provide you with the savings flexibility and tax advantages that you need for tomorrow.

  • The individual retirement account is a personal, tax-deferred account for people who are employed, and their spouses. You can set up an IRA at almost any bank, brokerage, insurance company, or mutual fund. There are a wide variety of investment options to choose from, and your earnings are untaxed until they are paid out of the account. more
  • There are many estate preservation benefits that come with the Roth IRA. By placing assets that you wouldn't need in your lifetime into a Roth IRA, you could be building up a healthy inheritance for your children, free of income taxes. more
  • Confused about IRA distributions? You're not alone. If you ask ten different people about the rules, penalties, and tax consequences of IRA distributions, you're likely to get 11 different answers. The fact is, a wrong move could cost you dearly. more
  • Individual Retirement Accounts (IRAs)

401(k) Plan
The Revenue Act of 1978 created new retirement options for employee benefit plans. Under section 401(k) of the Internal Revenue Code, employers may offer their employees the option of taking cash payments currently or deferring the cash until retirement.

  • Employees may also elect to defer current income to their plans on a pre-tax basis. This simply means that an employee can invest money into a plan before the money is taxed. Employees can save thousands of dollars each year by choosing this option. Some 401(k) plans have an add-on feature, called a savings, or "thrift" plan, that also allows employees to make after-tax contributions. Profit-sharing plans, savings plans, and stock bonus plans may include provisions for 401(k)s.
  • If you are retiring or changing careers it's time to decide what to do with the funds in your 401(k) or other type of employer-sponsored qualified retirement plan. Your decision on how to receive your qualified plan distribution does have real life consequences that can mean the difference between living a comfortable retirement or wondering if your savings will last. Naturally, you want to protect what you've accumulated during your years of hard work. more

403(b) Plan
The 403(b) plan, named for section 403(b) of the Internal Revenue Code, is a type of retirement plan under which participants are eligible to receive special tax benefits.

  • The money contributed to a 403(b) comes from before-tax dollars. These dollars are deducted from one's paycheck before they are taxed. Thus, salary you contribute to one of these retirement plans are not taxed while they remain in the fund (although how much may be contributed pre-tax is limited). more

Defined Benefit Pension Plan
In a defined benefit pension plan, an employer commits to paying its employee a specific benefit for life beginning at his or her retirement.

  • The amount of the benefit is known in advance, and is usually based on factors such as age, earnings, and years of service. Click here to see the maximum benefits permitted annually. Defined benefit plans do not have contribution limits. more

Keogh Plan
A Keogh plan is a retirement plan for the self-employed professional, or the owner of an unincorporated, typically small, business and its employees.

  • Money you place into a Keogh grows tax-free until it is withdrawn. Full-time employees must be included in a Keogh plan if they have worked for the company more than three years. You cannot take money out of your Keogh without a potential tax penalty before you turn 59½ and separate from service. more

Annuities
An annuity is a unique financial vehicle designed to help people accumulate money for their retirement and/or turn a lump sum of money into a guaranteed stream of income payments.

  • Deferred annuities offer the advantage of tax deferral and are used to accumulate money for retirement. There are two types of deferred annuities: fixed and variable.
  • Fixed deferred annuities pay a fixed rate of interest. Variable annuities usually offer investment divisions such as stock, bond, money market, and specialty investment divisions, and fluctuate in value with market conditions.
  • An Income annuity is used to generate a stream of income payments that is guaranteed to last for as long as you need it to - even for the rest of your life.
  • Income annuities can be used by a business to pay pension benefits to retired employees. Or they can be used to provide for a spouse as in the case of a Joint and Survivor Annuity.
  • What Exactly is an Annuity?
  • Using Annuities to Help Secure Your Retirement Nest Egg
  • The Cost of Waiting
  • CD vs. Fixed Deferred Annuity
  • Frequently Asked Questions About Annuities

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Investment Vehicle Options

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