Planning for Retirement

 

ing IRAs. To select the one best suited to you is going to take some reading. A little basic research never hurt anyone. Make sure you shop the market, because rates offered, fees, commissions, et cetera, can vary a great deal from one IRA to the next. Even after you've established an IRA, it doesn't hurt to keep an eye open, because there are transfer and rollover provisions that allow you to move your IRA dollars without triggering a tax liability."

Although I'd hoped that Roy would have been a bit more specific, I wasn't too disappointed. Much to my amazement, in three short months I had reached the point where I didn't mind doing some elementary financial research.

"If you're self-employed, even on a part-time basis, or if you're in partnership, an excellent retirement vehicle is available to you: the Keogh plan. So, who should be paying attention to this section?"

Only Cathy raised her hand.

"I asked that deceptively simple question for a reason," Roy went on. "For some unknown reason, a great number of people equate 'self-employed' with 'self-employed full-time.' That can be a costly misconception. Tom, you mentioned several months ago that you had made a few thousand last year driving a delivery truck occasionally for a friend. That is income from self-employment, so you, too, qualify for a Keogh plan. And Dave, you should be ashamed for not raising your hand! Aren't you forgetting a certain intelligent and attractive woman living with you who is very successfully self-employed? As a freelancer, Sue generates significant self-employment income."

Good point.

"Where does the name Keogh come from?" I wondered. "Who cares?"