Feb 7, 2010
What Are My Retirement Options If My Employer Does Not Offer A 401k Or Pension Plan?
As the other people have said, you can start either a regular IRA or a Roth IRA. The money in these can be invested in a CD at a bank or into a number of other items, such as mutual funds. The problem with having just the IRA is that you are limited as to how much you can invest.
Besides the IRA, you may want to think about investing in an annuity. In an annuity, you earnings grow tax deferred until retirement. At retirement, you can have the money paid out as a lifetime income. There generally is no limit as to how much money you can invest in the annuity.
There are different types of annuities. You can get fixed, indexed, or variable ones.
The best thing I would recommend is talk to a financial representative to help you decide which plan best meets your needs.
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You can opt for a traditional IRA and for a Roth IRA. The traditional has tax advantages now but then you pay tax upon withdrawal. The Roth has no tax advantages now but you pay no tax upon withdrawal.
I would recommend TIAA-CREFF. They now are open to anyone (not just teachers, nonprofit). They have been solid investors and now offer brokerage services as well. they have been useful and friendly to me. Most of my accounts are worth 3-6 times the amount I put in.
Investing should never be done at banks or insurance companies.
Do a ROTH IRA or a Regular IRA (which ever is best for you).
If this is your only/first investment & you have a long “time horizon” start with an S&P 500 index fund (no load/expenses below 0.2%).
FYI: Banks pay interest. Over long periods of time the value of your money will be eaten up by inflation. READ READ READ READ – LEARN LEARN LEARN…. before you do anything!
The best thing to do is open an IRA from your bank or online banks.
IRA – Individual Retirement Account. You can open this at a local bank/brokerage or even on line.
Depending on your income, and age, you can place $4,000 into an IRA, more if you are 50 and over, less if you earn over a certain amount.
The IRS website (I’ve put the link in the Sources box) has more info.
PS: If you are going to put in $4,000, consider putting in $333.33 a month – or whatever your figure is divided by twelve.
Good luck
Eat pet food like the rest of us.
I suggest you to open a brokerage account at ameritrade.com and then drop me a line.
I can advice you.
I would open up an IRA (Individual Retirment Account) at a local bank. That way you know will be saving for your retiremnt and you can’t spend the money foolishly.