How should I begin (or increase) my savings for retirement?
Friday, June 4th, 2010 at
12:26 am
How should I begin (or increase) my savings for retirement and which types of retirement plans (401ks, IRAs, etc.) might be best for my personal situation? I’m out on LTD with a rare disorder called Pyderma Gangrenosum. I receive a monthly check for the LTD but recently I inherited some money that I would like to invest wisely and as tax free as I can get. At the moment I’m nervous with 401K’s and IRA, since the new talk of the government want to pull our private retirement and make it Federal control. Is there plans that safer then IRA and 401K’s since both of this are tied in to Stocks as well?
Filed under: Retirement Planning
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First and foremost, considering your situation you may want to consider an alternative to the stock market, such as a fixed indexed individual retirement annuity…available as a roth IRA or traditional IRA. IRA and 401k plans do not need to be linked to the stock market and this is simply one alternative.
A roth IRA if used correctly will provide tax free income down the road and is a great option. Depending on your age, you may also want to consider a traditional fixed annuity that allows you to earn interest tax deferred each year (there may be penalties if you take it out prior to 59 1/2)…
Roth IRAs are one of the best investments you will ever make, but I am not sure whether you would qualify to contribute. After that, where you decide to put your money is your choice. There is minimal risk if you put it into the right things. It would depend what your 401k was invested in and who it was handled by. I would consider talking to a financial planner, even if once.