4 Retirement Plans You Might Not Know About

Your golden years will arrive before you know it, so it's a good idea to set goals now and choose the right retirement program. You might be surprised at the number of offerings out there. Here are some retirements plans to consider.

Solo 401(k)

You've likely heard of the 401(k), a great way to prepare for retirement if you're lucky enough to work for a company that offers it. But what if you run your own small business? Then the Solo 401 (k) plan may be right for you. Like the regular 401(k), you can make a hefty contribution each year that is deducted from your taxable income. If you've had a good year financially, the Solo 401(k) might be a great way to cut your current tax bill, but according to Kevin Cohee, keep in mind that like the regular 401(k), you'll be taxed on that income when you start drawing it. Also, you'll be penalized if you take the money out early.

Roth Ira

The Roth IRA is like a regular IRA plan in that you can make a hefty contribution each year so long as you earned that money during that time. Unlike the regular IRA, you don't get a tax deduction on your contribution. But the good news is that money can grow tax-free, and you won't be taxed on any income you withdraw upon retirement.

Simple IRA

Do you work for a small company that has 100 employees or less? Then you could be entitled to a Savings Incentive Match Plan for Employees IRA, also known as a Simple IRA. To qualify, you have to earn a certain amount of money from that company each year. While you won't be able to contribute as much to this type of plan as you would a 401(k) or other pension programs, it's still a great way to prepare for retirement as part of your overall plan.

Self-Directed IRA

Do you prefer investing in precious metals, real estate or cryptocurrencies? With a Self-Directed IRA, you can place funds in these types of assets with the same contribution limits as a traditional IRA plan.

Preparing for a retirement that is comfortable is crucial. Time goes by before you know it, and it's a smart move to consider all types of retirement plans to make sure you have one, or preferably, two programs you are investing in on a regular basis