Top 10 Retirement Savings Options
1. Traditional 401k- One of the most popular retirement savings options is the traditional 401k plan. This plan allows you to choose where your capital is invested in most cases and you also choose the level of risk you are willing to take with the money. These plans may have different loan and withdrawal provisions depending on the specific plan used by the employer.
2. SIMPLE 401k- Just like the Vanguard retirement savings trust and other conservative choices a SIMPLE 401k provides the benefits of a traditional 401k in a much simpler format. The SIMPLE version makes it easier for employers and employees, with less paperwork and more flexibility involved.
3. Individual Retirement Account- An IRA has some benefits that most other options do not offer. When you establish an IRA this account follows you through life, instead of being employer based like many other plans. Employment changes will not affect an IRA the way that these changes can affect many 401k plans.
4. High Yield CDs- Certificate of Deposits, also called CDs, are one of the retirement savings options that are considered safe and conservative. High yield CDs will offer a higher than average yield in exchange for large deposits or for any additional risks involved.
5. SIMPLE IRA- A SIMPLE IRA is a
retirement savings account that is designed to function as an IRA but with requirements that are simple and easy to understand for almost anyone. There is less paperwork and reporting requirements and the plan allows the same contribution amounts as a traditional account.
6. Annuities- Annuities can be a good option for retirement capital in some cases. An annuity is purchased in one of two ways, for a lump sum or periodic payments. The annuity will provide the contracted payments at the specified time, which would be during retirement.
7. Treasury Bills- One of the most conservative retirement savings options is Treasury Bills. Many investors choose this choice because it is considered safe and very low risk. Retirement funds should never be placed at high risk because these will be needed in the future.
8. Mutual Fund Investments- Buying mutual funds for retirement investments can be a smart move. These funds allow investors to purchase shares in many different investments at a single price. The risks involved with these funds can vary, with some being high risk while others are considered very stable and secure.
9. Municipal Bonds- One of the top retirement savings options is municipal bonds. These bonds are issued by municipal entities that include governments, school districts, and others. While some of these bonds may be considered risky most munis are chosen for security and stability. This makes them perfect as a retirement investment vehicle.
10. Stock Investments- Investing in stocks can help build up retirement capital when the trades are successful. This method does not involve debating an IRA vs 401k but does carry enormous risks at times. Stocks can be an added benefit to any retirement portfolio but diversity is also important so other holdings should also be in the portfolio as well.