What is the best way to save or invest for retirement?
I am a Realtor with no retirement benefits.... what is the smartest investment. I am 30 years old.
Public Comments
- Roth IRA is a good start. You have to make less than 95,000 or so a year to qualify. AFter 95,000, it tapers down to nothing at 110,000. The max that you can put in is 4000 a year. You can contribute to a Roth for 2006 until April 15, 2007. So if you have 4000 waiting around, go ahead and put it in there. A Roth IRA is done with after-tax money, so when you retire you can pull out of that account without getting taxed. You might also qualify for a SIMPLE IRA. Since I have a 401K, I have not looked at one of those.
- If you are self employed, look into a Keogh plan. I believe you can contribute up to $42,000 a year without running into the phase outs that apply to IRA's. Otherwise the rules are pretty much the same as for an IRA. Consult an accountant to make sure you maximize your benefits, since there are two types of plans with differing contribution limits.
