Top Choices for Retirement Investment

If you want to make sure that you’ll have a comfortable retirement ahead of you, you’ll be glad to know that you have many retirement saving accounts to choose from. However, if you don’t know much about your available options, you could get easily overwhelmed. Having high return investment advice in 10924 is an amazing tool to have when working to meet your retirement investment goals.




Your Retirement Investment Options


The 401k


Your employer provides you with this account. This is a great option because your employer usually matches a percentage of your contributions. However, if you’re self-employed, you may want to keep researching. Under the 401k are two broad options–the traditional 401k and the Roth 401k.


  • Traditional 401k


This features a benefit that allows you to use your contributions to reduce your taxable income. However, your withdrawals made in retirement will be treated as normal income tax.


  • Roth 401k


With a Roth 401k, the contributions that you make to your account are taxed. However, the money that goes into your account can grow tax-free. This eliminates the need to pay capital gains tax when your money grows. Plus, you won’t have to worry about paying income tax when you withdraw funds in retirement.


Annuities


Annuities refer to contracts between you and the insurance company. With annuities, you’ll be able to invest in your retirement every year without putting any limit on how much money you can invest. The insurance company guarantees to pay you over a specific period of time. These payments can either begin right away or deferred.


Individual Retirement Accounts (IRAs)


Although employers don’t provide IRAs, they offer a wider range of investment options, including bonds, mutual funds, exchange-traded funds (ETFs), and stocks. If your employer set up a 401k plan for you, it’s best to open up an IRA. However, compared to other alternatives, IRAs set a smaller contribution limit.


Dividend-Paying Stocks


If you find a company that continues to perform at its best, its dividends will eventually increase. You might want to incorporate some dividend-paying stocks into your portfolio to give your retirement investments a substantial boost.





Do You Need High Return Investment Advice in 10924?


The financial experts at 1879 Advisors can help you understand and make the most of your retirement investment options. Schedule your appointment today.


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