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Question

I maxed out contributions to my SEP IRA, what other investment options should I consider?

Answer

Depending on your income level and your financial objectives, you have several options to consider:

• IRAs: you can make a contribution to you and or your spouse’s IRA or ROTH IRA, recognizing there are limitations on it being tax-deductable and income phase-outs.
• Annuities: you can contribute to a tax-deferred annuity that would defer the income to a future date of your choosing. There are guarantees associated with some of these that would allow you to protect principle along with a minimum rate of return.
• Investing: you can contribute in a non-qualified investment brokerage account where your investments can grow, seeking to realize long term capital gains and possibly a lower tax rate.

You have choices, it just depends on what you want to accomplish. We recommend you consult with a CERTIFIED FINANCIAL PLANNER™ professional from the Financial Planning Association to help you make smart financial decisions to achieve your goals.

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