Different Types of Retirement Solutions in San Antonio
Posted: Dec 04, 2017
Planning for your future is always a good thing to do to adapt with changing times and keep your life stress-free. Having a strong retirement plan for your old age will help you go a long way without having to depend on anyone even when you are not working. There are a number of retirement solutions available and it often gets confusing when you have to choose one. In this article we will discuss the various types of retirement solutions in San Antonio that you can avail for a well-planned future.
Qualified and Non-Qualified Retirement Plans
Before we list down and discuss the various retirement plans available in San Antonio, let’s understand the basics well. There are mainly two types of retirement solutions in San Antonio, qualified and non-qualified plans.
- Qualified plans are those that offer you many tax benefits in addition to the financial savings you make with your retirement plan. Both the contributions you make towards your plan and the earnings you start reaping are tax deferred until you withdraw. 401(k), IRA, SEP and MSA are the typical qualified retirement plans available.
- Non-qualified plans are retirement plans that are not eligible for any tax benefits. Hence both the contributions you make and the earnings you earn are taxed like your regular income. Certificates of Deposit, Mutual Funds, Annuities, Life Insurance, Stocks and Bonds are few of the typical non-qualified retirement plans.
Best Retirement Solutions in San Antonio
1. 401(k), 457 and 403(b)
All of these are some of the most common qualified retirement plans you can avail along with added tax benefits. 401(k) is a tax code for employees in an organization that allows them to make tax-deductible and tax-deferred savings. 457 is similar to 401(k) and is a tax provision code for government employees. 403(b) is similar to 401(k) and offers tax benefits for employees in non-profit organizations such as schools, colleges and charities.
2. Individual Retirement Account (IRA)
IRA is another retirement solution in San Antonio that is very popular. IRA can be broken down into many types namely Traditional IRA, Roth IRA, SIMPLE IRA and SEP IRA. While Traditional and Roth IRAs are established by individual taxpayers, SIMPLE IRA & SEP IRA are established by small business owners and self-employed individuals. Contributions towards Traditional IRAs are tax deductible, however the same is not tax deductible for Roth IRAs.
3. Stocks and Mutual Funds
Stocks is another type of non-qualified retirement solution in San Antonio where you buy a portion of a corporate’s property and claim a portion of the corporate’s assets and earnings. Mutual funds are nothing but bundled up stocks that are usually chosen by professional fund managers.
4. Bonds and Annuities
Bonds are nothing but certificates of your contribution to a corporate or government institution for a selected period of time, for a set interest rate. In annuities, you strike a contract with an insurance company to make regular investments, to receive regular payments in return added with interest. Thus, bonds and annuities too are great retirement solutions in San Antonio.
Harrin Group is an independent insurance agency in San Antonio, TX offering customized and affordable life and health insurance, key person insurance, annuities, retirement solutions ( www.HarrinGroup.com/Retirement-Solutions ) to individuals and businesses from top insurance carriers. To know more, visit www.HarrinGroup.com.
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