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pre-death minimum withdrawals. If you contribute to a Traditional IRA and a Roth IRA, there are limits to how much you can contribute to each. Check with your financial advisor for information.
SIMPLE IRA: Savings Match Plan for Employees is an IRA plan for employees of small companies with 100 or fewer employees who earn at least $5,000 per year. You may contribute up to certain annual limits and your employer will make matching contributions to certain levels much like a 401(k). People 50 and older may also make catch-up contributions to these plans. The tax benefits are much the same as a Traditional IRA.
Annuities: This account is a contract you make with an insurance company. Your contribution can be in one lump sum or in a series of payments. The contract guarantees that payments will be made to you for life or over a specific time period depending on the type of annuity you hold. Annuity returns can be fixed, variable, or equity indexed. Talk with a financial advisor to see if an annuity is suitable for you.
My, How Your Money Grows
The following shows how your money can grow at just 4% interest in an IRA account. You can see the value of beginning early, but anytime is better than never starting at all. The following is based on a $3,000 per year contribution beginning at the age of 25.
Retirement: Are You an Ant or a Grasshopper?