There are many retirement investment programs available for consumers. Each offers different ways to participate and attracts investors seeking different outcomes.
Here are four of the most popular.
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1. A Diversified Portfolio
A mixed, balanced portfolio of six to eight investment types across several asset classes works well, creating a powerful but also simple investment strategy, analysts say. This is a safe, diversified approach that covers for most risks and offers "reasonable" gains in the long haul, Forbes said
2. SEP IRA/Roth IRA
A SEP IRA is a good choice if you're a small business owner or self-employed entrepreneur. Using a SEP IRA allows you to contribute to a retirement fund in an easy way, contributing 25 percent of your income or up to $53,000 in the year 2015. SEP is an acronym for simplified employee pension, according to Investopedia
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A Roth IRA is for those who earn less than $131,000 ($193,000 jointly). In it, investors may contribute after-tax money, which earns interest tax-free. Contributors are not taxed until they make withdrawals after age 59.5. They are not required to withdraw from these funds when they turn 70. Those who earn too much to qualify for a Roth IRA typically will convert to a traditional IRA.
3. 401(k) plans
These plans allow investors to contribute a share of their salary (pre-tax or post-tax) to a an investment program that is then matched by their employers, according to Investopedia
. Employees pick out specific plans according to their needs. Different rules apply for when and how an investor may withdraw money.
While some shy away from investing in annuities, some analysts call them low-risk with good benefits. They are purchased from insurance companies, and after a series of contributions, can be paid out to an investor over the length of the annuity contract.
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