Question

what types of retirement plan securities would you recommend for individuals just starting their career and individuals at the end of their career?

Answer 1

There are various types of retirement plan securities that would recommend for individuals just starting their career and for individuals at he end of their career.

I would suggest Roth IRA plan for individuals just starting at their career.  

1. Roth Individual Retirement Account- In this account, the contributions to Roth IRA are non deductible. The withdrawal of money from a Roth IRA account is tax free. Roth IRA withdrawals are 100% tax free. under this plan, you would have to pay taxes today and invest the money and withdraw it tax free.

Lets assume $1000 and pay taxes on it today say 20%. you are left with $800 to invest in the IRA. After 30 years, you end up with $3460. when you want to withdraw that money in retirement you wont have to pay taxes.

2. Qualified Retirement Plan- The examples of qualified retirement plan are defined benefit plans, money purchase pension plans and profit sharing plans. Under this plan, the contributions to the qualified plan are non taxable until the withdrawal of mone takes place.

3. Keogh Plan - Under this plan keogh refers to stock, bonds, or mutual funds. This is also a qualified retirement plan for self employed individuals. Under htis plan, the contributions to the plan are tax deductible.

4. Traditional Retirement plan for individuals- It is an Individual retirement account which is established by an individual. If an individual is covered by a company retirement plan, he or she loses his or her right to the IRA deduction.

5. Defined Benefit Pension Plan-under this plan, workers are paid, a specific monthly benefit at retirement.

6. 401(k) Plan- Retirement Plan where an employee gives part of the current income into a tax shelter where it grows tax free until the employee withdraws its. 401 k investment is tax deferred, you will pay taxes on it once you withdraw the money in retirement.