IRA
An IRA is an INDIVIDUAL RETIREMENT ACCOUNT. An IRA is a
personal savings plan that provides income tax advantages to
individuals saving money for retirement purposes. Any individual
can open and make contributions to a traditional IRA, as long as
you, or your spouse (if you file a joint return), received taxable
earned compensation during the year and you were not 70
years old by the end of the year. IF these scenarios occur you may
want to look into an IRA:
- You're maximizing your contributions to your
employer-sponsored plan and would like to save more
- You're changing jobs and need to move your assets from your
former employer's qualified retirement plan
- You want to consolidate your retirement savings for easier
management.
Mutual Funds
Mutual funds offer an easy way to own shares in a variety of
investments (stocks, bonds, etc.) without having to invest a lot
of money at one time. When you purchase shares of a mutual fund,
you're pooling your money with other investors and letting the
mutual fund (which is simply a professional money management
company) invest and manage the money to help meet the fund's
specified investment goal (e.g., growth, income or a combination
of the two). It provides an investor with the benefit of a
higher rate-of-return combined with a lower level of risk, due to
the diversification of the securities within the fund.
Annuities
Annuities products are designed to accept and grow money from
an individual over a period of time. Upon annuitization (or
maturity), money is paid-out through a steady stream of
payments each month. Annuities are primarily used for the purpose
to secure a steady cash flow during retirement years.
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