No Benefits? No Problem! How to Save for Retirement on Your Own

Divas who fall under the category of entrepreneurs, small business employees or housewives may be wondering how they can save for retirement without an employer-sponsored plan. The good news is that you don’t need your employer to help you save for retirement.  Here are three different approaches to consider:

Open an IRA

Contribute to your IRA (Individual Retirement Account) as much as allowable each year. Because of the potential for tax-deferred, compounded earnings, IRAs offer similar long-term growth opportunities as employer-sponsored plans. In addition, you may qualify for tax-deductible contributions or tax-free withdrawals, depending on whether you invest in a regular IRA or a Roth IRA.

 Consider Annuities

Generally purchased from a life insurance company, a typical annuity features the potential for tax-deferred growth and provides either fixed or variable payments beginning at some future time (usually retirement). Depending on the type of annuity, you may have several options in how you ultimately take distributions.

Don’t Forget Traditional Investments

Investments such as stocks, bonds and mutual funds are  usually taxable, but they can still help you over the long-term. The specific types of investments you select will depend on your risk tolerance, time horizons, liquidity needs, and goals for retirement. A financial professional can help you build a portfolio that makes sense for you.

How are you saving for retirement? What’s working for you? What isn’t?


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