There are plenty of retirement plan options for people, you can choose among the top 10 retirement plans mentioned below:
- Defined Contribution Plans: Many financial advisors consider these the best retirement plan among the top 10 retirement plans, as most employers who offer such plans match a certain part of your contributions.
- Pensions: These are the easiest type of retirement plans as it requires only a little effort from your end. The employer contributes all the money and the amounts are managed professionally.
- Traditional IRAs: The traditional IRAs are not subject to any income restrictions, which enables anyone to contribute. You can enjoy tax deferred growth, but are tax liable.
- Roth IRAs: These are individual retirement accounts which are funded with taxed dollars. You can enjoy the benefits of tax-free withdrawals and tax-free growth. The 401k employer plan is highly recommended.
- SEP IRAs: The Simplified Employee Pension (SEP) IRA is for the sole proprietors. It is the easiest and low-cost retirement plan for such proprietors who don’t have any employees under them.
- Guaranteed Income Annuities: This plan helps you to get a guaranteed income stream after you retire. It is an insurance product which you can invest today and get guaranteed returns.
- Non-qualified Deferred Plans: If you are barred by income restrictions or maxed out from your contributions, but want a Roth IRA-like structure, this plan is perfect for you.
- Social Security: Almost everyone receives Social Security after the age of 65 years, which accounts for over 39% of old American income. Timing is a great factor in such investments.
- Real Estate: This is one of the top 10 retirement plans which you shouldn’t overlook, as managing a property is a work for everyone and real risks are involved in the plan.
- Cash value life insurance: This is recommended more than the 401k retirement plan. You need to pay a policy that develops cash value after your retirement.
Consider the above-mentioned top 10 retirement plans and invest in one that best suits your requirements.