401(k)

If your employer's 401(k) investment options suck or if its just plain too expensive and eats up your retirement returns while feathering the bed of the plan's broker, move your money where you can control your investment options and fees.

The trick is to resist the urge to use the monies. After tucking money away in your 401(k) for quite some time, you may be tempted to use it to treat yourself to a new car or some other indulgence.

Traditional IRA
Retirement savings plans for individuals, designed to be tax-deferred at contribution time. Once withdrawals start, contributions and earnings subject to tax.
ROTH IRA

Sometime ago I received an email that read: “Peter, I am the Chief Financial Officer with a mid-size software company in New York State and my company has just purchased a Canadian firm with over 200 employees. We are seeking your assistance to help us with the set-up of an equivalent to the 401k plan for our new Canadian workforce. Can you refer us to a competent resource?”

Most people assume that promises made to them by their employers are iron clad. For those of us who are self employed we have no employer to rely on and must rely on ourselves to make sure our future retirement is secure.