|
Written by Bob Freeman
|
|
The time to save for retirement is now! No matter how young or old you are, the best way to ensure that you have what you need to enjoy your retirement years, is to start putting something (even a small amount) away throughout your entire career.
Saving for retirement isn’t as hard as it may seem. Most employers offer some sort of plan that provide tax incentives for employees. Others even match worker’s contributions, giving them even more "free" money to sock away.
In addition to employer-run savings plans, there are a variety of personal retirement plans available today. Not sure which one is right for you? Here are a few of the most popular ways to save for your retirement. Check them out to see which one best suits your savings style, and, of course, your budget.
Payroll Deduction IRA
The time to save for retirement is now! No matter how young or old you are, the best way to ensure that you have what you need to enjoy your retirement years, is to start putting something (even a small amount) away throughout your entire career.
Simplified Employee Pension (SEP)
Instead of establishing a complicated profit-sharing or money purchase plan with a trust, many employers are opting to opening SEP plans for individual employees, which allow both the employer and the employee to make contributions directly into an individual account which is not tied to the company or other employees in any way. These are also popular plans for the self employed.
401K Plan
The most popular retirement savings plan being used today, the 401K is a way for employees to save for their retirement, with contributions often matched up to 50% (3% is required by law), a certain amount by employers. Most 401K plans invest in diversified Mutual Funds for better long-term profits.
|
|
Read more...
|
|
|
Written by Bob Freeman
|
|
When it comes to Mutual Fund Investing, performance truly isn’t everything. Too often, investors rely almost totally on a fund’s past performance to determine whether or not it’s a good buy. While it can be a worthy guide, the U.S. Securities and Exchange Commission warns against using past performance as an investor’s only resource tool. Just because a fund performed well in the past doesn’t mean it will continue to do so. Over the long haul a fund’s success depends on a lot of factors.
Check the Fees
There are all kinds of fees and charges associated with investment funds. Make sure you understand how these fees will affect your bottom line. For instance a high-cost fund with a 1.5% operating expense will generate app. $49,000 in 20 years for just $10,000 in investment capitol, while a low-cost fund with a .5% expense will make over $60,000! To determine which fund will yield the most profit, run the costs through a mutual fund cost calculator.
Check the Taxes
Before investing in a new fund, make sure it isn’t about to make a capital gains distribution. Otherwise, you may be required to pay taxes on it - even before it makes you any money!
Check the Fund’s Age
Newer, smaller funds often have better short-term performance than larger, better established funds. As funds grow in size, the impact on individual funds is lessoned, and so are the profits generated from it. Check a fund’s performance record to see how it has weathered the ups and downs of market changes over a set period of time.
Check the Turnover Rate
A fund that rapidly buys and sells may cost the investor more in the long run with higher trading costs and capital gains fees. Check a fund’s portfolio to see how often they turn over securities.
|
|
Read more...
|
|
|
|
|
|
|
Page 25 of 28 |
+repeat-x&color4=%23FFFFFF&color5=%235C7099+url(images%2Fgradients%2Fgradient_thead.gif)+repeat-x&color6=%23FFFFFF&color7=%23FFFFFF&color8=%23000000&color9=&fontsize=12&dark_icons=0){kind=link}
