r income. I will be defining an ideal make-up of a retirement portfolio from the perspective that savings began at middle age or mid-career with approximately 20 years worth of savings.There are several standard means of retirement investing. The U.S. Social Security system is not a bad start, for most however, this is not enough to retire comfortably on. On average, an individual could expect $800 per month from Social Security. An individual who maximized contributions to Social Security could expect $1400 per month. Considering that an individual in his/her prime earnings could be bringing in over $4000 per month, Social Security would not be enough.Employer retirement plans in addition to Social Security are an even better start. Plans for smaller companies include SIMPLE IRAs and SEP plans, a basic definition: contributions are limited, but contributed into by both employer and employee. They offer tax-deductible contributions and tax-deferred investment build-up. Plans for larger companies include 401 (k) and 403 (k) plans, these plans usually allow the employee to choose among several pre-chosen mutual funds, the employer matches contributions, and these contributions are made before taxing income, thereby reducing tax now in the present.And IRAs, which allow a retirement account for nonworking spouses, however, IRAs are not as beneficial as there were originally made out to be. Myth: All traditional IRA contributions are tax deductible. Fact: No, once you attain a higher level of income, ex: $41,000+ for a single unmarried person in 1999 there is no allowable deduction. The exception is if you are not covered by a retirement plan at your place of employment. A Roth IRAs contributions are not deductible, but the interest is tax-free. Roth IRAs contributions are limited at $150,000 modified adjusted gross income (MAGI) for married filing joint in 1999. Both traditional and Roth IRAs limit your yearly contribution...
