Friday, December 24, 2010

Investing for Retirement by Ravinder Tulsiani

Investing for Retirement by Ravinder Tulsiani

Retirement may be a long way off for you – or it might be right around
the corner. No matter how near or far it is, you’ve absolutely got to
start saving for it now. However, saving for retirement isn’t what it
used to be with the increase in cost of living and the instability of
social security. You have to invest for your retirement, as opposed to
saving for it!

Let’s start by taking a look at the retirement plan offered by your
company. Once upon a time, these plans were quite sound. However,
after the Enron upset and all that followed, people aren’t as secure
in their company retirement plans anymore. If you choose not to invest
in your company’s retirement plan, you do have other options.

First, you can invest in stocks, bonds, mutual funds, certificates of
deposit, and money market accounts. You do not have to state to
anybody that the returns on these investments are to be used for
retirement. Just simply let your money grow overtime, and when certain
investments reach their maturity, reinvest them and continue to let
your money grow.

You can also open an Individual Retirement Account (IRA). IRA’s are
quite popular because the money is not taxed until you withdraw the
funds. You may also be able to deduct your IRA contributions from the
taxes that you owe. An IRA can be opened at most banks. A ROTH IRA is
a newer type of retirement account. With a Roth, you pay taxes on the
money that you are investing in your account, but when you cash out,
no federal taxes are owed. Roth IRA’s can also be opened at a
financial institution.

Another popular type of retirement account is the 401(k). 401(k’s) are
typically offered through employers, but you may be able to open a
401(k) on your own. You should speak with a financial planner or
accountant to help you with this. The Keogh plan is another type of
IRA that is suitable for self employed people. Self-employed small
business owners may also be interested in Simplified Employee Pension
Plans (SEP). This is another type of Keogh plan that people typically
find easier to administer than a regular Keogh plan.

Whichever retirement investment you choose, just make sure you choose
one! Again, do not depend on social security, company retirement
plans, or even an inheritance that may or may not come through! Take
care of your financial future by investing in it today.

About the Author: Ravinder Tulsiani is a published author who has
written about personal finance, real estate, self-help and online
marketing. For details visit: