Retiring isn’t easy by any means and one size fits all doesn’t always fit everyone. There are many types of retirement accounts and you may not know which one might be the right “fit” for you and what you want to accomplish in retirement. There may be factors such as, how old you want to be when you retire, how much money you want to save, or whether to be aggressive or not? Let’s talk about 10 types of retirement accounts and if they could help you.

HIGH YIELD SAVINGS ACCOUNTS

These are very much like a traditional savings account in that they are insured by the FDIC. The difference is they usually offer a better interest rate than a traditional savings account.

HEALTH SAVINGS ACCOUNT

HSA’s are used by people that have a high deductible health insurance plan or money set aside for any medical expenses in the future. You can contribute money to them on a pre-tax basis, qualified withdrawals are tax free, and your balance grows tax free as well.

ROTH IRA

One of the best options for many people. There is no age limit to open a Roth with earned income. With a Roth, you pay taxes on money invested, but not on the monies it made and you pull out for retirement. You can contribute $6,000 a year, $7,000 if over 50. Roth’s also do not require minimum distributions once you turn 72.

TRADITIONAL IRA

This traditional individual retirement account provides many benefits and is probably the best known. You make pre- tax contributions, and the earnings on those contributions in the account grow, tax deferred. The contributions and earnings are not taxed until you make withdrawals in retirement. You can withdraw funds at any time, but beware of penalties for doing this before age 59 ½.

SEP IRA

If you are self-employed or own a small business, then this may be the retirement account for you. It works in the same way as a Traditional IRA does, but the noticeable difference is that it has a very high contribution limit. You can contribute 25% of your pre-tax income, up to $58,000.

SIMPLE IRA

This may be a good choice for a small business, with fewer than 100 employees, to make tax deferred contributions. It’s a small company 401(k) version. The company must make contributions and the vest immediately.

401(K) PLANS

Probably the best known plan out there, it is a company sponsored retirement plan. You contribute a portion of your wages to it, on a pretax basis. It is made up of stocks, bonds, and mutual funds that you can pick yourself with the help of an advisor. Hopefully, your employer will match your contribution dollar for dollar, or to a certain percentage. It’s free money and you can start withdrawing the money when you retire. You can also move the money to another 401(k) plan if you leave the company.

403 (B) PLANS

If you work for a tax-exempt or non profit organization, you may have access to a 403 (b) retirement plan. It works like a 401(k) does, with the current annual contributions set at $19,500. Unlike a 401(k), your investment choices aren’t as diverse.

BROKERAGE ACCOUNTS

You can grow your retirement savings by buying/selling stocks, bonds and mutual funds. Many younger people enjoy this type of investment, but there are risks associated with this. You may lose money you don’t have or want to lose. However, you can get tax deductions from any losses you may have and you can access your money at anytime with no penalty.

FIXED ANNUITIES

Annuities are a contract between you and a financial institution, usually a life insurance company. It is funded with either a lump sum payment or monthly payments. In exchange for these payments, the insurance company offers you tax-deferred growth of the money and a guaranteed stream of income upon retirement either for a specific period of time or for the rest of your life.

Don’t delay, meet with Coach Pete D’Arruda or one of his team members today and get started on the road to financial freedom. Find out which type of retirement account is best for you and your situation. As a fiduciary, he is required to have his clients best interest in mind. Working with Coach, all his clients receive unbiased, well-thought-out financial advice. Not a sales pitch. So what are you waiting for, contact Coach Pete and Capital Financial Advisory Group, LLC today!