I dont know much about savings and IRAs and stuff. But is there an IRA in which if you contribute about $50/month, and you put in about 25 years, you would have about $850K at the end of the 25 years? If it is a $50 contribution per month, does the employer have to match that $50? Is that how the amount gets so high?

I'm an employer that has a small business and I'm looking to set things up for our employees for the long term.

Just wondering.

If you have a small business, (or even if one doesn't) I hope you're wise enough to have a financial advisor who also does your retirement and stocks and stuff... I'm sure if you gave him a call, he could explain that to you and walk you through it to make sure you do it right. Even if one of us here explains all that to you, it's still a very complicated thing that no one should do alone. Asking that question here won't save you any money, because you should get a stockbroker/advisor anyway, which, in the long run, would actually save you money and help you turn more of a profit, both in your investments and in your business. Seriously, people who handle their own money end up losing a lot of it, or they don't even realize how much more they could have had.

*This totally sounded like a commercial!!
"Brought to you by: AIG SunAmerica! Because no one should handle their money alone!"

If you are an employer with a small business, you must have an accountant, and you should definately speak to him/her in regards to the options that you may have in regards to setting up something for your employees.

As for the question regarding an IRA for an individual :

An Individual Retirement Account or IRA is an account that you can open up every year. This is a tax deductible contribution that allows you to save towards your retirement age and at the same time to give you the incentive to save, the government allows you to deduct the total amount of your contribution from your taxes for the year that you are making the contribution to the IRA account. Depending on your yearly income and if you have a retirement account in your place of work, you may be allowed to contribute and deduct up to $3000 for that contribution. There are many options that you can choose to invest your IRA monies into. Your best bet is to go to a bank and ask to speak to an investment officer. He or she will answer your questions , tell you what amounts you may be allowed to contribute and deduct, and will explain to you the different types of investments that you can choose from to invest your IRA monies in. I suggest a bank because this way you will get a fair explaination of options. If you immedeatly go to a private financial advisor wihtout knowing the answers to the basic questions, that person is obviously going to try and get you to invest your IRA in his or her company's options. A bank will give you the general idea explaining the low to high risk investments. The private financial advisor is basically working on commissions and he or she will try to persuade you to invest your monies in certain mutual funds, etc. that they will potentially make more commissions on than others. I am not saying that private financial advisors are not trustworthy, but like anything else, there are some bad apples out there who won't really be looking out for your interests. That is why I advise that you sit with a Bank's financial officer, so that you can get somewhat of an education regarding the options that you have. Then you can carefully search out a financial advisor. Good luck!


Don Cardi