If you are a worker in your twenties or thirties, working at a job you love, or simply the job you need, retirement is probably the furthest thing from your mind right now. Retirement can sneak up on you though, so starting to invest for the future early on, including pension investments and other types of private investments, is wise.
Professional investment firms, such as Fortress Investments, are completely focused on the financial world and, more specifically, on investing. They have the training and experience to advise you in choosing the best investment path for your retirement; a look at their employee profiles, such as Pete Briger’s profile, will tell you everything you need to know about their investment history and successes, helping you choose the right advisor for your needs.
Generally, a pension refers to a type of retirement plan in which money is contributed by you, and matched by your employer, during your employment with the company. Employment-based pension plans, are often referred to as “deferred compensation” because the money accumulated in the fund is tax-free, or tax deferred, until retirement. A specific amount is guaranteed to you, based on your salary, the number of years you have been with the company, and a fixed percentage rate. Many employment-based pension plans are 401(k) plans, which accrue their earnings on a tax-deferred basis.
The most popular type of private pension investment is not really an investment itself: the IRA, or Individual Retirement Account. IRAs are essentially a savings account, in which you can keep a variety of assets, including bonds, stocks and mutual funds. IRAs come in a variety of incarnations, including traditional IRAs, Roth IRAs, and SEP IRAs, the differences between them mainly being how they are taxed and when and how money is dispersed to you. IRAs offer generous tax breaks, another reason for their popularity.
Investing for retirement
Whether you choose to go solely with an employment-based pension plan, or with a private pension investment plan, you need to get good advice on the best places to invest your money, and how to handle it properly to generate the most growth. While independent research, through the internet and financial papers and magazines, is highly recommended, the best way to get good advice is to ask the experts.
Planning for your retirement may seem intimidating, or simply a responsibility that can be put off until tomorrow. Beginning your retirement planning now, however, will ensure that you have the money you need to live the retirement you want.