The good news is that we are living longer. The bad news is we have to pay for it. That means saving more in a 401(k) or similar employee-provided retirement savings accounts, like a 403(b). Or, it means saving in Individual Retirement Accounts or Roth I.R.A.â€™s. Later on, it may mean buying an annuity. Our collection of articles can help you get started.
401 (k)â€™s and Similar Plans:
Tax-advantaged accounts like 401(k) plans and their cousins, the 403(b) and the 457, are increasingly popular ways to plan and invest for your retirement. They are particularly attractive when the employer matches all or part of your contribution. You may even be able to borrow from your accumulated balance before retirement. But unlike traditional pension plans, these programs leave much more of the investment strategy in your hands. These articles can help you get acquainted with the options.
With the amount of retirement products currently on the market, Individual Retirement Accounts, or I.R.A.’s, are often overlooked. But I.R.A.’s are an easy way to save, especially for those without access to a company-sponsored program like a 401(k). The two main types of I.R.A.’s, the traditional and the Roth, differ on one main point: Contributions to a traditional I.R.A. can be deducted from your taxes, but then the withdrawals made later on in life are taxed. For the Roth, there are no deductions upfront and no taxes later. Which I.R.A. is best for you?
What are you going to do with all of that money you saved for retirement? One option is an annuity, a long-term retirement contract that can give you regular income for life instead of forcing you to manage a big lump sum. But these tax-deferred investment choices can be complicated and may not be the best use of your money. Is an annuity right for you?
copyright @ NYTIMES