5 Tips to Wealthy Retirement

Social Security as the sole source of survival after your working years, will not provide sufficient money for a happy retirement. A wealthy retirement needs added funds to carry you through the retirement years. It can take many forms, one of which is an annuity retirement plan. An annuity is money usually put in an insurance company, which makes investments. When you retire you will get periodic payouts, which can be taken in several ways, and grows all along on a tax-deferred basis. Unfortunately, too many people who purchase an annuity retirement plan take a lump sum payment. This is contrary to what the annuity was set up to do, which is to supply you with sufficient funds periodically, not all at once. An annuity retirement plan should be set up with input by a professional for a wealthy retirement.

There are other ways to supplement your retirement plan. While working for an employer put as much money as allowed into a 401k plan, which invests in various financial instruments. If your employer matches your contributions, this is even better. Like an annuity, it can be directed into the financial instruments you prefer, to spread the risk. These could be bonds, stocks and other investments. If you work for yourself there are a couple of Individual Retirement Plans (IRA’s) to investigate, depending on the tax benefits available.

Of course, only by sitting down and talking to a certified estate planner can you really start to get to know all the issues and find the best option for you.

Investing in safe municipal bonds will help you reach a wealthy retirement. They are entirely tax free, therefore, your real interest rate is higher than given by other bonds. Finally, if your home is worth a lot and is too much house for you. Sell it and move to smaller quarters and invest the profit. Under some conditions no capital gains taxes will be paid for the first $250,000 of profit, for the husband and the same for the spouse.