Different Types of Retirement Plans
Preparing for retirement is essential if you want to be able to maintain your standard of living after you leave work.
There are a number of different types of retirement plans.
Social security offers a government sponsored financial support option that can provide some support during your golden years.
It is supported through taxation.
Social security can be combined with personal retirement plans.
Social security should not be relied upon as the only source of income during retirement.
An employer sponsored investment plan is linked to your employment.
Qualified employer sponsored plans such as the 401k offer tax benefits to participants, while non-qualified plans are usually taxed.
Employer sponsored plans can be combined with private plans.
The availability of an employer sponsored plan will depend upon the employer, who will choose the options that they wish to offer, if they are going to provide any sort of plan.
If your employer does offer a retirement option, then it will usually be in your best interests to participate.
You may be able to benefit from matched contributions into your 401k, for example, which means that your employer will match the contributions that you make into your retirement plan.
Private or personal retirement plans are another option.
The most common form of this type of plan is the IRA or Individual Retirement Account An IRA does not depend upon the participation of the employer and it is, therefore, ideal for people whose employer has not chosen to offer a retirement planning option.
Annuities are another way for individuals to invest their money towards retirement.
They are a form of financial insurance which offer a tax deferred means of saving.
An annuity will provide a regular income once you retire.
Annuities often offer excellent benefits for your family in the event of your death, and they are, therefore, an excellent way to guarantee peace of mind and financial security for your loved ones.
There are a number of different types of retirement plans.
Social security offers a government sponsored financial support option that can provide some support during your golden years.
It is supported through taxation.
Social security can be combined with personal retirement plans.
Social security should not be relied upon as the only source of income during retirement.
An employer sponsored investment plan is linked to your employment.
Qualified employer sponsored plans such as the 401k offer tax benefits to participants, while non-qualified plans are usually taxed.
Employer sponsored plans can be combined with private plans.
The availability of an employer sponsored plan will depend upon the employer, who will choose the options that they wish to offer, if they are going to provide any sort of plan.
If your employer does offer a retirement option, then it will usually be in your best interests to participate.
You may be able to benefit from matched contributions into your 401k, for example, which means that your employer will match the contributions that you make into your retirement plan.
Private or personal retirement plans are another option.
The most common form of this type of plan is the IRA or Individual Retirement Account An IRA does not depend upon the participation of the employer and it is, therefore, ideal for people whose employer has not chosen to offer a retirement planning option.
Annuities are another way for individuals to invest their money towards retirement.
They are a form of financial insurance which offer a tax deferred means of saving.
An annuity will provide a regular income once you retire.
Annuities often offer excellent benefits for your family in the event of your death, and they are, therefore, an excellent way to guarantee peace of mind and financial security for your loved ones.
