Money Basics

Other retirement savings options

There are many other retirement savings options available, including:

 

• Keogh Plan: If you are self-employed, you might want to consider this tax-deferred retirement saving plan. Usually, 25 percent of the income you earn—a maximum of $47,000 per year—can be contributed. Keogh plans are more complicated to set up than IRAs, so be sure to get good tax advice before the plan is set up.
• Stocks: Buying stock in a company allows you to become partial owner of that company. Thoroughly research and look for companies that have a good financial outlook. Make sure you understand the risk of loss, as well as the opportunity to gain from your investments.
• Bonds: Bonds are loans you make to a corporation, the federal government, or a local government. You basically become a lender for a set period of time, called a term, and are paid interest for the use of your money. Bond terms typically range from a few months to 30 years. Different types of bonds range in the level of risk. Bonds are generally considered a safer investment than stocks. If you hold the bond until it matures, you will receive the amount you originally paid plus interest.

 
There are many more retirement savings options. Spend some time reading about different investments. When you are ready, you may want to find a financial advisor. He or she can help you navigate your way through the many investment options and get started on building your personal investment plan.