If you have such a thing, let s start by taking a look at your company retirement plan. Once upon a time, these plans used to be quite simple and mostly sound. However, after the Enron troubles and all that followed, people are not as secure in their company retirement plans anymore. Because of this quite a few people look elsewhere and if you choose not to invest in your company retirement plan, you do now have other options.

For example you can invest in: stocks, bonds, mutual funds, certificates of deposit, and money market accounts. Or if you are a bit more adventurous other less conventional options include: art and rare book collections, livestock such as thoroughbred horses and breeding pairs of rare and valuable animals, tree plantations, etc. You do not have to state to anybody that the returns on these investments are to be used for retirement. Just simply let your money grow over time, and when certain investments reach their maturity, reinvest them.

You can also open an Individual Retirement Account (IRA). This is quite a popular option because the money is not taxed until you withdraw the funds. You may also be able to deduct your IRA contributions from the taxes that you owe. An IRA can be opened at most banks. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the money that you are investing in your account, but when you cash out, no federal taxes are owed. A Roth IRA can also be opened at a financial institution.

Another popular type of retirement account is the 401(k), these are typically offered through employers, but you may be able to open a 401(k) on your own. You should speak with a financial planner or accountant to help you with this. The Keogh plan is another type of IRA that is suitable for self employed people. Self-employed small business owners may also be interested in Simplified Employee Pension Plans (SEP) which is another type of Keogh plan that people typically find easier to administer than a regular Keogh plan.

Whichever way to decide to go for your retirement investment, just make sure you do at least choose one! Do not depend on social security, company retirement plans, or even an inheritance that may or may not come through! Take care of your financial future by investing in it today.

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Saving for retirement takes a big priority in our lives as this is something which should be started from the very beginning, when we begin our career. Retirement planning is something which needs attention at some point in your life, sooner or later. So, the earlier you begin, the better it is. This is because, with early retirement planning, you will know how much to save and in which way to save so that you can make the maximum savings in all these years of your career, without wasting time.

When people start planning for their retirement in their later years, saving becomes a little difficult. After all, by the time you learn that a particular amount of savings can give you the most relaxing years of old age, it becomes difficult to save the maximum in that less span of time.When you start saving from the early years of your carrier, you can save little by little whatever you can, without any pressure. This is one of the biggest advantages of saving early in life. You will not be driven by a hurry of collecting a particular amount of money in a given time.

Tips for retirement saving

Here are a few useful tips to begin with your retirement saving:

When have made up your mind to start saving for your retirement, one of your first tasks would be to calculate your retirement requirements. This will help you decide what amount of money you will need to have in hand when you have retired.
The second most important task in your retirement saving plan will be to determine if you are sincerely putting away the required amount of funds to accomplish your financial goal successfully. Maximize your contributions to your tax retirement accounts like IRA and 401K accounts.
Figure out you asset allocation and review the retirement portfolio by the end of every year to adjust the assets if needed.

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It is never too early to start investing in your future. In fact, most financial advisors would advise that you start saving for your retirement on receipt of your first pay cheque! A timely retirement savings plan will ensure that sufficient funds will be available to you in your golden years.

If you haven’t already started planning for your retirement, contact an authorised financial services provider for advice on choosing the optimal investment plan for your retirement. There are a number of different savings, investment and insurance solutions available.

Have you considered a provident fund?

A provident fund is a savings account comprised of the contributions made by you during your working years, in addition to the equal contributions made by your employers. The monthly contribution is calculated as a percentage of your salary and paid out to you on retirement.

On retirement, the total value of your provident savings can be paid out in cash. Chat to your broker to establish the applicable tax conditions at the time of your withdrawal. Alternatively, you can select to convert all or part of your accumulated capital to purchase an annuity from an insurer of your choice.

The funds used to purchase the annuity are transferred tax-free, but the payments made thereafter will be subject to the prevailing PAYE and SITE conditions at the time of payment.

Pension fund features and benefits

A pension fund is an investment asset pool established by an employer. You, the employee and your employer will contribute to this account to generate long-term stable growth. These accrued funds will provide you with a pension once you reach retirement age.

When you retire, a lump sum of up to one third of your pension value is payable to you. Thereafter it is compulsory to purchase an annuity with the balance of the funds. The lump sum paid out to you will be affected by the tax conditions applicable at the time of payment. As with a provident fund, the annuity purchase will be transferred tax-free.

Your provident or pension fund is the single largest amount of capital you will ever accrue. These insured funds are invested in a secure, tax-efficient savings account, safe-guarding your retirement nest egg.

Conditions and benefits of preservation funds

It is not permissible to withdraw any cash from your preservation funds before your retirement.

In the event of your death before retirement age, your investment funds will be paid out in full to your nominated beneficiaries, less any applicable tax deductions.

You are permitted to switch between investment portfolios.

If you are disabled before the minimum retirement age, it will be compulsory for you to submit medical evidence of your disability to specified parties. On acceptance, you will be considered as an ill-health retiree.

You are permitted to transfer your capital to another registered preservation fund before retirement.

Retirement annuity

A pension or provident fund is a long-term means of saving funds for your retirement. A retirement annuity serves to ensure that you will not outlive your assets. These insurance plans provide a lifetime income stream from your pension savings that cannot be outlived.

Retirement annuity (RA) investors are not subject to any annual contribution limits and they may invest as much or as little as they wish. There is no pre-determined age for withdrawal and investors are at liberty to postpone the payments until they are needed.

Features and benefits of a retirement annuity

There is no medical examination required for retirement annuity qualification.

An annuity plan provides reliable financial protection and your funds will be secure in the case of insolvency.

Retirement annuities do not have to be spent, they can also be saved. If you invest in an RA, your funds are tax sheltered until they are withdrawn.

Annuity plans can be fixed or subject to fluctuating inflation conditions.

In the event of your death, one third of the funds are paid out immediately to each appointed beneficiary. The balance is used to acquire an annuity for each beneficiary and dependent, ensuring that they will each receive an income.

Success in retirement takes foresight and sufficient saving

Maintain your independence and experience financial freedom in your later years, by saving for your retirement. There are many retirement funds available to you in South Africa. Seek professional advice from an insurance provider, to secure your financial future.

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Read more on News10 Sacramento

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Read more on The Southern Illinoisan

After tax-season is an ideal time to consider an amazing tax-deferral vehicle — the very small business pension plan. Surprisingly, this is still a little known way for the self-employed to legally defer taxes on up to 100% of their income when they save it for retirement, paying taxes on it only when the money is withdrawn to use later in life.

The story: A very small business pension plan is a defined benefit plan for 1-5 person companies or individuals with self-employment income (even employed people who earn self-employed income on the side qualify). The amount of money that can be contributed annually is not limited to $50,000, as would be the case with a defined contribution plan like a small business 401(k). Nor is it limited by the amount of your current year earnings (the contribution may not be limited by the earnings, but the tax deduction is limited to current year earnings). Instead, the contribution to a defined benefit plan is determined based on age, years to retirement and the average of the three highest years of earnings.

The result: If you are self-employed, own and run a small company with up to five employees, or have a substantial side income from consulting or director’s fees, you may be able to contribute – and deduct from income – $180,000 or even more each year! We are talking about truly HUGE tax deferrals – more than enough to start retirement years earlier.

The details: There is no specified limit on your contributions. Instead, the limit is on the allowable benefit, not the contribution. The benefit is the amount your plan will pay out annually in retirement, and that can be up to an average of your three highest years of income up to $180,000 a year. The contribution is what you pay in each plan year. In general, you can contribute up to the amount you need to accumulate the funds to pay you the specified benefit after retirement. So, for example, a 52 year old that plans to retire at age 62 with an annual income of $200,000 can contribute – and deduct from his taxable income each year as much as $169,476 each year for an estimated annual tax savings of $67,790.

And that’s not all. Contributions can be invested in virtually any traditional investment vehicle, from stocks and bonds through mutual funds and annuities. When you retire, you have all the options of any other kind of retirement plan, including rolling the plan’s assets into a Rollover IRA. And, of course, contributions to the plan grow tax-deferred until you take a distribution.

There are no onerous restrictions on you either. You can stop the plan at any age and roll the value of your benefit over to an IRA. Routinely, however, a plan is expected to be maintained at least 3 years and the earliest retirement date is age 55.

Of course, not everyone qualifies. This program is designed for self-employed people age 45 or older, with no more than five employees, and who typically earn at least $75,000 a year from their work. And of course, to get their retirement savings caught up to the amount they will need, they must be willing to make a significant contribution each year for the life of the plan.

The really nice thing is that eligible people don’t have to be pension experts to make this work. A completely packaged program, OnePersonPlus® is available from financial advisors that work with Dedicated Defined Benefit Services, the company that designed and offers the plan. Some of the advisors offering the plan work with The Hartford, Oppenheimer Funds, and Pioneer Funds, but investors with a preferred advisor should ask them to run an illustration at www.onepersonplus.com or call 1-866-269-2706 to speak with a defined benefit plan consultant.

This is the right time to learn how to get rid of the after tax-time blues so you can get caught up on your retirement planning in just a few years.

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If you need to save money in the short term then a good way to start is by setting up a simple instant access savings account. There are plenty of these accounts on the market so shop around and find the one that best suits your needs.

Many savings accounts can be opened with a little as £1 and look for instant access if you want to be able to withdraw money whenever you need to.

Instant online access savings accounts can offer some of the most competitive rates and you could open an account online in just a few clicks.

Once you have opened a simple savings account then try to make regular payments to boost the balance. You could start by setting up a standing order from your current account. Have the money transferred straight after payday and choose an amount you can afford.

If you have any money left over at the end of the month you could also transfer this into your savings account. Apply the same rule to any pay rises you receive and save the extra amount instead of spending it. With a little effort you could be setting aside savings regularly and watching the amount grow.

Having some savings you can instantly access is essential in case of emergencies but it’s also worth thinking about your savings over a longer time span. If you are planning to save over a greater period of time then you can find specific accounts that are more suited to long term saving plans.

A cash ISA is a good option if you want to save money long term and allows you to take advantage of your yearly tax-free savings allowance. This type of savings account pays interest tax-free up to specific limits which help you to get more back for your money.

Paying into a pension is another way to set money aside for your future. Speak with your employer to see if they provide one or are prepared to contribute on your behalf. The sooner you begin paying in, the higher your income is likely to be when you retire so there’s no time like the present to investigate the opportunities.

Whatever type of savings account you want to open you can start off small and then progress from there. Having a monthly budget planned out also helps you see where your money is being spent and where you can save even more.

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START EARLY:

For the most part we all have identical hopes and dreams but each of has a different strategy to how we expect to realize them. The best way to realize your desired goals is to start as soon as possible. The faster the better. It’s never too late to start scheduling for your old age. Compounding interest is an extremely powerful device when it comes to financial planning. For those people who begin saving for their retirement in the 20’s are able to set up a massive nest egg with relative ease assuming that normal contributions are made.

SAVING VEHICLES:

So you have some additional cash flow and you want to put it somewhere. One of the top options you have is your employer’s 401(k) Plan (or RRSP’s for our Canadian readers). The benefit related to this sort of investment is the opportunity to make pre-tax contributions which in turn lessen your taxable income AND the earnings mature in a tax free setting until you’re prepared to use them. Contributing to a 401(k) Plan is a brilliant way to invest your income and is at the basic level of personal finance basics and tips on budgeting.

SOCIAL SECURITY OR PENSION PLANS:

This might be a high-risk venture that too many people count on. Social security checks are a meager amount of money at best and the majority people that depend on it typically live in poverty. The likelihood of you being able to live out the old age you’ve always dreamt of are slim. In Canada, countless people who are currently starting, firmly believe that the Canadian Pension will have dried out by the time its their moment to start collecting. Your ideal choice is to make other investments.

Your retirement should certainly be a happy one where you can live care-free and do almost anything you want. If you make modest investments, even just $25 a week, you’ll greatly improve your quality of life. By following many of the personal finance basics and tips on budgeting on my website you will increase the chances of living out your golden years of your dreams. Who want’s to be flipping burgers at a fast food joint when your 70 anyway? Start saving for tomorrow, today.

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Imagine depositing $1,000 of your money into the bank, but instead of getting a crummy toaster, you receive an extra $1,000 to go along with your deposit. To add to the fun, imagine getting a tax deduction for your deposit and not having to pay tax on your “gift.” Furthermore, both your $1,000 and the gift $1,000 grow (it is to be hoped), and you don’t have to pay income tax on the interest, dividends, capital gains, or the appreciation until you withdraw the money. When you withdraw the money, you will have to pay taxes, but you will have gained interest, dividends, and appreciation in the meantime. That is what employer matching contributions to retirement plans are all about. If the employer matches the employee contribution, it offers a 100% return on the investment in one day (assuming no early withdrawal penalties apply and the matched funds are fully vested).

Over the years, I have heard hundreds of excuses for not taking advantage of an employer-matching plan. All those reasons can be summarized in two words: ignorance and neglect. If you didn’t know that before, you know now. If you are not currently taking advantage of your employer-matching plan, run—don’t walk—to your plan administrator and begin the paperwork to take advantage of the employer match. Matching contributions are most commonly found within Section 401k, 403b, and 457 plans. Even if your employer is only willing to make a partial match up to a cap, you should still take advantage of this opportunity. A fairly common agreement is that the employer will contribute 50 cents for every dollar up to the first 6 percent of salary you contribute. Don’t grouse that it is not enough or not worth it. You have everything to gain—this is free money that will compound and grow—and as Einstein said, “The most powerful force in the universe is compound interest.”