Go Premium for a chance to win a PS4. Enter to Win

x
?
Solved

How to buy a retirement plan something by myself?

Posted on 2012-03-24
4
Medium Priority
?
74 Views
Last Modified: 2012-03-27
Because I have tax due, so I want to buy a retirement plan by myself before 04/15/2012.
How to start off the journey?
0
Comment
Question by:zhshqzyc
  • 3
4 Comments
 
LVL 99

Accepted Solution

by:
John Hurst earned 1200 total points
ID: 37760943
It depends on where you are. That is because different countries have different legislation and what works for me may not apply to you.

In the United States, one can set up a 401(K) plan and make contributions that are tax deductible on imput and taxable upon withdrawal at retirement. There will be a limit on the annual contribution you can make. See:
http://en.wikipedia.org/wiki/401(k)

In Canada, one can set up a Registered Retirement Savings Plan and make contributions that are tax deductible on input and taxable upong withdrawal at retirement. There is a limit of 18% of prior year income on this year's contribution.

In both plans, interest and gains is tax-free (again, taxed on withdrawal).

So two things to do to start your journey:

1. Talk to an investment advisor and set up your plan. Make sure you know how the investment advisor will invest and make sure you know how much you can contribute. There is a penalty where I am for overcontribution.
2. Understand that this is a long journey and requires meaningful and annual contributions.

Good luck. .... Thinkpads_User
0
 

Author Comment

by:zhshqzyc
ID: 37761216
I am in US and a contract with a company. So the employer doesn't provide 401k for me. But I do want pay less tax by filling 1040 form. Can I just call any bank buy funds online directly.
Because the last day 04/15 or 04/17 for this year is approaching.
0
 
LVL 99

Expert Comment

by:John Hurst
ID: 37761227
Where I am, the investment house must set up and register a plan. So 401(K) for you, RRSP for me. Either way the plan has to be registered.

You need to talk to your bank or investment advisor as this is legal tax stuff and advice here is only general in nature.

I have to contribute for last year by February 28 even though last year's taxes are due April 30. I do not know what this date rule is for you, but your invesment advisor does know.

So with this little detail, the advice in my first post is still valid. ... Thinkpads_User
0
 
LVL 99

Expert Comment

by:John Hurst
ID: 37773868
Thank you. I was pleased to assist. Good luck with your retirement planning. Stick with it, because it takes years to come amass what you need. ... Thinkpads_User
0

Featured Post

Hire Technology Freelancers with Gigs

Work with freelancers specializing in everything from database administration to programming, who have proven themselves as experts in their field. Hire the best, collaborate easily, pay securely, and get projects done right.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Phishing is at the top of most security top 10 efforts you should be pursuing in 2016 and beyond. If you don't have phishing incorporated into your Security Awareness Program yet, now is the time. Phishers, and the scams they use, are only going to …
If you want to move up through the ranks in your technology career, talent and hard work are the bare necessities. But they aren’t enough to make you stand out. Expanding your skills, actively promoting your accomplishments and using promotion st…
The Bounty Board allows you to request an article or video on any technical topic, or fulfill a bounty request to earn points. Watch this video to learn how to use the Bounty Board to get the content you want, earn points, and browse submitted bount…
Articles on a wide range of technology and professional topics are available on Experts Exchange. These resources are written by members, for members, and can be written about any topic you feel passionate about. Learn how to best write an article t…
Suggested Courses

926 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question