The traditional 401(k) remains a popular choice for retirement savings, offering tax-deferred growth and potential employer-matching contributions.
Roth IRAs are another excellent option, providing tax-free withdrawals in retirement and more flexible withdrawal options than a traditional 401(k).
The Solo 401(k) is designed for self-employed individuals and allows for higher contribution limits and potential tax advantages for small business owners.
Simplified Employee Pension (SEP) IRAs are suitable for small business owners and offer high contribution limits and potential tax deductions for contributions.
401(k) Rollover to IRA
If you change jobs or retire, consider rolling over your 401(k) into an IRA to gain more control over investment options and lower fees.
These funds automatically adjust their asset allocation based on your retirement date, becoming more conservative as you near retirement age.
Indexed annuities offer growth potential linked to a stock market index while providing downside protection, making them a suitable option for risk-averse retirees.
With an immediate annuity, you can receive regular income payments immediately or soon after purchase, providing a stable income stream in retirement.
Some retirees prefer to invest in blue-chip dividend-paying stocks, which offer potential capital appreciation and regular dividend income.
Health Savings Account (HSA)
If you have a high-deductible health plan, consider using an HSA as a retirement savings tool, as it offers tax benefits for qualified medical expenses.