Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people, just like you, are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
Solved

How to buy a retirement plan something by myself?

Posted on 2012-03-24
4
64 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 93

Accepted Solution

by:
John Hurst earned 300 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 93

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 93

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

Announcing the Most Valuable Experts of 2016

MVEs are more concerned with the satisfaction of those they help than with the considerable points they can earn. They are the types of people you feel privileged to call colleagues. Join us in honoring this amazing group of Experts.

Question has a verified solution.

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

Suggested Solutions

Title # Comments Views Activity
HLN Channel commercial offering free credit score from 3 credit bureaus 3 73
fountain pens in usa 6 57
will india ph work in usa? 21 74
freezing-in newPC.. 3 24
Whether you believe the “gig economy,” as it has been dubbed, is the next big economic paradigm shift (https://www.theguardian.com/commentisfree/2015/jul/26/will-we-get-by-gig-economy) or an overstated trend (http://www.wsj.com/articles/proof-of-a-g…
Gift cards are not a new concept - it's been around for a very long time.  Undoubtedly, over the past you have received such a card or purchased one for a friend or relative.  Are you aware that you've been feeding the machine?  If not, read on :)
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…
Where to go on the main page to find the job listings. How to apply to a job that you are interested in from the list that is featured on our Careers page.

856 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