No matter what kind of job you have, there’s one end goal in mind. That goal is saving up enough in your retirement fund to be able to live out your golden years in complete comfort. If you’re like most people, your job has a 401k that you can buy into.
Not everyone has that option, however. For these people, there are IRAs and self-employment plans. Are you having some trouble finding the best retirement plans to buy into?
We can help you weigh all your options so you can retire the way you want. Check out this guide to learn more.
IRAs
The most common retirement planning option available is IRAs. Instead of going through your place of work, you’ll head down to a bank. They’ll keep tabs on all the stocks, investments, bonds, and cash that you put into the account.
You will have a set limit on how much you can put toward your IRA every year, but that’s a small downside when you consider how much control you’ll have over your retirement.
You choose the bank you go through. All the investment decisions are up to you. To a point, you get control over your tax breaks as well. If you don’t feel like you can handle that level of responsibility, you can hire an accountant.
Employer-Sponsored Plans
Most jobs have some type of retirement plan that you can buy into. These come in the form of defined benefit and defined contribution.
You’ve most likely heard your grandparents talk about defined benefit plans. These are also called pensions. The employer pools a bunch of money into a single retirement fund each year.
You might still run into this, but defined contribution is much more popular. This is your basic Publix 401k retirement plan. Employer-sponsored plans have a few advantages over IRAs.
The main one is how easy they are to maintain. If you buy into it, most employers will take the retirement out of your paycheck automatically. You’ll also have a higher contribution limit when compared to IRAs.
The downside is that you won’t have as much freedom. There really aren’t many choices available with employer-sponsored plans.
Self-Employed Options
Financial planning for retirement gets a little more complicated if you’re self-employed. There are single-serve 401ks that you can get. You’ll also have IRA options.
Either way, these plans come with a high contribution limit. You’ll also have a lot of investment choices, and they’re not as hard to set up as you may think.
Plan Ahead With the Best Retirement Plans
Every working person has one goal in mind. They want to one day have enough money saved up to be able to retire. The last thing you want is to have to keep working into your golden years.
You want to be able to spend it in peace. Start looking around for the best retirement plans today and invest in your future.
Speaking of the future, most people spend their retirement years on the road. If this sounds like something you want to do, visit the travel section of our blog for a few destination ideas.
