Saving for your future is a process, not an event. It is not something that you do once and forget about; it is a continual process of taking action: planning and doing, maintaining and balancing your priorities, and re-evaluating and making changes.
The bottom line is that it is up to you to plan for your retirement. Company plans are a great start, but it is up to you to build a retirement fund to live the lifestyle of your dreams. If you or your spouse has a business, it is up to you both to provide for your retirement by setting up your own retirement plans.
Following is a review of various retirement plans and strategies. [Note: For all Keogh plans listed below, they are qualified plans, so unless it is a profit sharing plan that allows for in service distributions, hardship or loans, the only distributable events are termination of employment, retirement, death, or disability].
Employees who qualify3,7
Depends on the plan2,4
Those who don't have company pension plans or who have put the pre-tax maximum into their company plans
Self-employed person who is a sole proprietor1,7
Employers with 100 or fewer employees who earned $5,000 during the preceding year7, 10
Depends on plan
Small-business owner who is funding a plan for himself and employees. Contributions are discretionary.1,7
Depends on plan2,6
Small business owner who is funding a plan for himself and employees. Contributions are required to be made each year.1,7
DEFINED BENEFIT KEOGH
Self-employed person nearing retirement who needs to fund a larger retirement benefit1,7
Someone who has put the maximum into other plans and who won't need the money for at least 10 years8
Someone who has put the maximum into other plans, prefers a fixed rate of return and who won't need the money for at least 10 years8
CASH-VALUE LIFE INSURANCE
Someone who has put the maximum into other plans, needs additional insurance coverage, and who won't need the money for at least 10–12 years8
Permitted by surrendering your policy4
NONQUALIFIED DEFERRED COMPENSATION
Everyone who qualifies9
Generally, only for hardship, but depends on plan
TAX EXEMPT INVESTING
Individuals who are in at least the 25% federal marginal income tax bracket
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC. Insurance products are offered through LPL or its licensed affiliates. Premier America Credit Union and Premier America Investment & Retirement Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Premier America Investment & Retirement Services, and may also be employees of Premier America Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of Premier America Credit Union or Premier America Investment & Retirement Services. CA Insurance License #0759204, TX Insurance License#1643255.
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