Choosing an IRA

Choosing which IRA is right for your individual circumstances is very important. There are distinct differences in a Traditional IRA and a Roth IRA, however they are both good choices when saving for retirement.

An IRA can best be described as a "Basket" holding different investment options, i.e. stocks, bonds, annuities, CDs, mutual funds. Your investment choices will depend on several criteria, including your time horizon and risk tolerance. Traditional IRAs allow your savings to grow faster through tax-deferral and Roth IRAs allow you to have tax-free earnings as long as certain conditions are met.

In order to determine which IRA is right for you, you need to know the differences and details of each. There are pros and cons for each type, however, IRAs are an excellent way way to help accumulate savings for retirement.

Investing in an Annuity

People are retiring younger, living longer and have a desire for a better life in their later years. In many cases their savings are low or non-existent and pensions are scarce. The markets are constantly changing. many investors find they need fixed assets in their portfolios as they near retirement because of their desire for stability. Some people turn to CDs for this dependability, but many have invested in fixed annuities.

Fixed annuities provide a competitive and predictable yield with no sales charge and no annual expenses. The money invested is guaranteed by the insurance company issuing the annuity and in most cases there is a money back guarantee of principal should the need arise for a full withdrawal of the funds. in addition, the interest from a tax-deferred annuity is not taxed until it is withdrawn.

At retirement time, the annuity can be annuitized for a lifetime income for predictable periodic payments to pay bills, medical expenses or take vacations.

Before investing in an annuity, you should consider:

• How much total income you need


• Other sources of income you have to meet retirement needs


• Do you need income for anyone other than yourself

Always consult with your personal financial advisor before investing in an annuity.