retirement
Finance

4 Best Retirement Plan Options to Consider

If you want to have a relaxed and happy life after your retirement, you need to have a retirement plan that lets you enjoy that luxury. A lot of people do not think of getting a retirement plan, because they think that social security will be enough. But that is not the truth. While social security might help you get by, it would not be able to cover all your financials. The government of the United States also wants the people to save more money for their retirement, and that is why there are several retirement plans out there for you. Let’s have a look at four of the best retirement plan options that can help you lead a better life post-retirement

401K Retirement Plans

A 401K retirement plan is offered by a company or an organization to its employees. With this option, you can contribute a small amount of your original paycheck into a tax-deferred investment. This also reduces the amount of tax you have to pay annually. This means if you earned $60,000 that year and contributed $6,000 in the plan, then you will only have to pay tax on $54,000. You can also opt for a gold 401K rollover that lets you transfer a chunk of your 401K or all of it into an individual retirement account (IRA). That can broaden your investment options.

Individual Retirement Account

Just like 401K retirement, IRA is also an investment that eases your tax burden. With an IRA you can invest in several commodities including bonds, stocks and mutual funds. You also have the liberty to make these investment decisions yourself. IRA is a great option for those people who are not offered a 401K option by their employer or wants to save more money apart from that. You can also convert 401K into an IRA later, as mentioned before. You can invest up to $6,000 in an IRA, and if your age is more than 50, you can invest up to $7,000 annually.

Health Savings Account

This account is basically for your health savings, which you can use for medical bills. But you can also use it as a retirement plan. Your health insurance will last for a good period, but a stage could come where you will need more money for your health bills as you age. The advantage of this health plan over other health options is that it will help you avoid tax. You can also use it for other purposes after you have passed the 65 years mark.

Rich People Roth

This option is for those people who want to save more money for their retirement. With IRA you can only save up to a limited amount of money, while with this option there are no limits if the account is set up properly. In this plan, you are using life insurance to grow your savings while avoiding taxes. It is like having an IRA that has no limits or no source of income. If you have maxed out on other options, this could be an excellent choice for you.