Common Retirement Investment Options

Common Retirement Investment Options


By Ric Dalberri, Founder of Retirement USA


Well, did you ever think your
retirement would come so soon? Maybe you are not quite there yet and are
thinking about common retirement investment options. Whichever it may be, you
need to secure your dreams. Most retirees have about $100,000 in their
retirement fund.

If you were to calculate and do extensions of cost analogy,
you will find you will need more than that. So, what will you do to get the
best out of your retirement and how consider common retirement investment

Let’s consider some of the following criteria:

What is your risk tolerance?

What is your age?

How long do you have before you retire?

What can you afford to put into your retirement?

You must pay yourself first as you would pay a monthly bill

You want to choose what will suit you best. When you meet
with a professional financial specialist to discuss common retirement
investment options, keep in mind what’s available to you. For example: 401K,
Traditional IRA, Roth IRA, Profit Sharing (if available, employer decides each
year whether contributions will be made), ESOP (employee stock option plan
where employer contributes to your fundin stock), 403b, 457, Keogh, SEP (
Simplified Employee Pension (self- employed).

Your common retirement options should be taxed deferred in a
qualified plan. Qualified being it is an approved IRA. As the above list gives
you different common retirement investment options, each has diversification as
to where and what you can put your monies. You can choose mutual funds, stocks,
bonds, certificate of deposits (C.D.’s), REITS (Real Estate Investment Trusts).
Keep in mind if you are fortunate to have an employer sponsored plan, dive into
it. It’s FREE money to you when they contribute to your common retirement
investment options.

Tax deferred plans allow you to defer payment of income
taxes until you actually withdraw funds during retirement. This provides a
double advantage. You save on your tax bill and invest at the same time. If you
choose a Roth IRA, your contribution will be taxed now. The best part is
withdrawals are tax free including earnings. You do not have to start your
required minimum withdrawals at 70 ½ years of age as with a Traditional IRA.
You can now (depending on your age) individuals 50+ can make additional
catch-up contributions. Whatever you decide for your common retirement investment
options, be sure to consult with a financial specialist. Check their credentials,
certifications, degrees and experience. Don’t be shy when it comes to your
common retirement investment options because these are your future dreams.