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Show Pick best investments for your retiring needs your own retirement timetable. These bonds offer comparative safety and growth, and, when held in an IRA, are tax-deferred. Also consider unit trusts, fixed portfolios that could give you good income coupled with the safety of diversification. Another investment, invest-ment, the limited partnership, which often is secured by property, coulcr provide substantial income, as well as a continuing flow of income. in-come. Your IRA will make a good foundation for the future but may fall short of meeting your needs. To gain additional tax advantages and build a substantially larger retirement retire-ment fund, supplement your IRA with a thoughtfully selected mix of these tax-advantaged investments: Tax-exempt mutual funds are logical choices for a supplemental account because they are often free of federal, state and local income tax, and some automatically reinvest rein-vest gains. Editor's Note: Charles Baker is a long time resident' of Woods Cross and is a financial consultant at Shearson Lehman Hutton in Salt Lake City. By CHARLES BAKER The Individual Retirement Account (IRA) remains the cor- nerstone of any successful retirement retire-ment plan despite a new tax law that limits or eliminates deductions for IRA contributions. Funds deposited de-posited in an IRA will continue to grow tax-deferred; thus, an IRA is an important asset builder and investors in-vestors should continue to make their maximum annual contributions. contribu-tions. However, the new law underscores under-scores the fact that an IRA alone probably will not support the retirement re-tirement lifestyle many people desire. de-sire. To build a substantially larger retirement fund, investors are urged to re-evaluate their IRA investments, in-vestments, then supplement them with other carefully selected tax-advantaged tax-advantaged investments. Start by getting a fix on the investments in-vestments most appropriate for your IRA generally those offering offer-ing safe, long-term capital appreciation. appre-ciation. Shearson Lehman Hutton, for example, offers some 250 investments in-vestments including the following which should be considered for your IRA: Stocks can be excellent capital capit-al builders. Stocks often pay quarterly quar-terly dividends that can be reinvested rein-vested and compounded on a tax-deferred tax-deferred basis. Capital appreciation apprecia-tion stocks, on the other hand, typically offer above average potential for growth. Fixed income securities, such as corporate bonds, normally provide pro-vide high yield and range from speculative spe-culative to very safe, while mortgage-backed securities offer high yield, safety and liquidity. Mutual funds offer a broad array of opportunities, and exchanges ex-changes among a family of funds (those offered by the same investment invest-ment firm), are not taxed within an IRA. Zero coupon bonds can be purchased so that maturities match |
