I'm looking for a 401K alternative where the risk/reward is very similar. I'm not looking to just stick my money in the stock market. I would like something a little more stable.
2007-09-06 04:31:30 · 9 answers · asked by KEVIN 3 in Business & Finance ➔ Investing
What is your line of work? Real Estate agent or something which can be deemed as self-employed? If yes, you have the option of the SIMPLE IRA (similar to a 401k) or a SEP IRA. These types of IRAs are designed specifically for self-employed individuals or owners of smaller businesses. They offer a higher contribution limit than the Traditional or Roth IRA. If you are eligible to have the SEP, it is also possible for you to have a Traditional as well for additional retirement savings.
If no, then the Traditional or Roth IRA as suggested by other posts are your options with regard to retirement plans. If you are investment savvy and would prefer to be in control of your investing rather than handing it over to a Trustee/Custodian, then look into Self-Directed IRAs. This type of IRA allows non-traditional means of investing.
Only a qualified tax preparer would be able to advise you on which plan is better suited for your retirement needs according to your entire tax portfolio. I highly suggest seeking tax advice before opening any plan.
2007-09-06 06:39:09 · answer #1 · answered by christyn79 5 · 0⤊ 0⤋
I would consider opening up a Roth or Traditional IRA account (Individual Retirement Account), you can have it tied into the stock market or it can be simply in a savings account form where you earn interest on money you put in. Roth is the most popular. I have traditional because the money I put in is tax deductible at the end of the year up to $5000 I believe can be deducted depending on income. You wont get taxed on the money till you withdraw it at age 59. Roth your money will not be taxed.
2007-09-06 04:40:01 · answer #2 · answered by prodigychild_21 4 · 0⤊ 0⤋
colklink is absolutely right go open an IRA. You can do this through various financial institutions and through your bank. There are many resources to fnd out informaion online:
www.fool.com/60second/ira.htm A 60 second guide to open an IRA
It is such a smart thing to be thinking of your financial future, so many people don't so this and regret it very much later in life.
2007-09-06 04:43:08 · answer #3 · answered by Hotsauce 4 · 0⤊ 0⤋
If your work doesn't offer a 401K, and doesn't have a pension plan, then you get set up your own IRA or Roth IRA account.
2007-09-06 04:38:48 · answer #4 · answered by Anonymous · 2⤊ 0⤋
A Roth IRA. You place your taxed money in the account. But when it is withdrawn, there are no taxes on the interest.
2007-09-06 04:38:53 · answer #5 · answered by ♥♥The Queen Has Spoken♥♥ 7 · 1⤊ 0⤋
Open a Roth IRA. This country, and it's new citizens (Mexican Nationals) aren't going to take care of you in your old age.
2007-09-06 06:24:03 · answer #6 · answered by Barney 6 · 1⤊ 1⤋
A Roth IRA is another possibility, how you choose to invest in it is your business.
2007-09-06 04:39:09 · answer #7 · answered by ? 6 · 0⤊ 0⤋
Open an IRA and diversify your stock holdings.
2007-09-06 04:38:48 · answer #8 · answered by inaru816 3 · 1⤊ 0⤋
GOOD! Go an open an IRA. So many who fail to do this are going to be eating dry cat food in their later years.
2007-09-06 04:37:39 · answer #9 · answered by Chloe 6 · 2⤊ 1⤋