The company I work for doesn't offer any 401(k) or retirement plans. What would be the best option to have a retirement fund?

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Answered by Bradford Creger, MoneyTips ContributorPRO+ in Pasadena, CA
You could take the traditionally recommended approach that is repeated religiously by the financial media, CPAs and most financial advisers, or you could explore your alternatives.

First, what are the “traditional” recommendations? Fund either an IRA or a Roth IRA. With the IRA you get an upfront tax deduction and with the Roth IRA you pay the taxes up front. Both have 2015 contribution limits of $5,500 if under age 50 and $6,500 if over age 50. Both offer tax deferral, but the Roth IRA provides tax-free access to your money. Both allow a wide variety of investment options. The main difference between these two options is “when” you pay the taxes. If you can afford to pay the taxes now, the Roth IRA is most likely a better option for you.

Having said that, most people want and NEED to save more than the relatively low amounts allowed in an IRA or a Roth IRA. So the most common recommendation is to fund either an IRA or a Roth IRA to the limit and then save more in an after-tax account. I could go on-an-on about the typical approach to retirement savings, but the BIGGEST problem with these methods is NEVER discussed.

What is the BIG problem that no one speaks of? All of these retirement savings methods REQUIRE you to invest your money in a Wall Street investment product. Wall Street has lost roughly 50% of our money twice since 2001 and many believe we are headed into even more troubled markets ahead. What can you do differently that avoids the risk of Wall Street, delivers market-like performance and tax-free income?

I could quickly detail an alternative but I would be doing you a disservice. If you’re interested in learning about another option for retirement savings, email me and I’ll send you a copy of my Special Report from the best-selling book I recently co-authored with Success Expert Brian Tracy titled “Do The Math: When is $1,000,000 Worth More Than $4,000,000?”

I hope this helps. I would be happy to answer any follow up questions and/or send you that Special Report.
Brad Creger
| 11.09.15 @ 16:44
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:54
Answered by Richard Eddy, Financial Adviser in La Verne, CA
There are a number of options for retirement funding, regardless of whether your employer offers a 401k plan or not. Of course, the right answer for you depends on your specific situation. Often, the right choice is to start and fund a traditional or Roth IRA. Through these retirement arrangements you could then invest in a wide variety of things (e.g., stocks, bonds, mutual funds, real estate). You could also choose among several "non-traditional" approaches to retirement saving/investing, like cash value life insurance, or investing in things outside of a qualified retirement account would be examples of these approaches. Regardless, you should carefully consider all of your options and choose the one(s) that fit your specific situation. | 11.09.15 @ 22:38
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$commenter.renderDisplayableName() — {comment} | 12.05.16 @ 04:54
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