A comfortable retirement is probably the most common financial goal. A college education for the kids is another common goal. For long-term goals such as these, we can afford to take more risk. Consider a globally diversified portfolio of investment company securities holding stocks and bonds. Also take maximum advantage of tax-sheltered plans such as individual retirement arrangements (IRSs) and 529 college-savings plans. Traditional IRA earnings accumulate tax-deferred, and contributions may be tax-deductible; contributions to Roth IRAs are not deductible, but withdrawals in retirement can be tax-free. Company-sponsored 401(k) plans offer similar tax advantages and often include employer matching contributions to help us reach our goals.
Chris Bryant is an American financial advisor.