Individual Retirement Account Can only be funded by cash Provides some tax advantages, cannot be seized by debtors during bankruptcy Double taxation occurs Borrowing from IRA negates bonuses. Money is invested into an IRA via “contributions” that can then lead to income tax deductions If you withdraw your money before the age of 59 there is a 10% penalty You must also withdraw money from the account before age 70 or your money will be taxed

Pros/Cons PROS: It is tax deductible and provides for retirement rather effectively CONS: You must wait before withdrawing money, and you can’t wait too long before penalty Opinion: If you are in it for the long haul, and won’t need money right away, then they are a very good idea.

Are collections of stocks and bonds that are pooled together among many investors For beginner investors mutual funds are the most attractive option It is the easiest way to invest rather than taking the time to assemble a portfolio, the professionals do the work for you. First National Bank – First Focus Funds are a proprietary family of mutual funds that are designed to provide clients with a wide range of investment options. Some options are First Focus Short/Intermediate Bond Fund First…Income Fund First… Nebraska Tax-Free Fund First…Colorado Tax-Free Fund First…Balanced Fund

Pros/Cons PROS: Diversification, Professional Management, Liquidity. You don’t have to invest all of your money into one company No one has the time to build portfolios, with mutual funds you don’t need them. CONS: They offer very little control Cannot see a day to day value of their investments Opinion: The core of this investment goes back to the basic rule of “don’t put all of your eggs into one basket!”

In the United States a 401K plan allows a worker to save for retirement and have those savings invested in deferring current income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wages paid directly, or deferred, into his or her 401K account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401K plans also offer the option to purchase the company's stock. The employee can generally transfers money among these investment choices at any time. In the less common trustee-directed 401K plans, the employer appoints trustees who decide how the plan's assets will be invested

Pros/Cons PROS: Easy way to plan for an early Retirement There is more than one kind of an investment option, so you don’t have to be tied down to just one. CONS: with the trustee directed 401K plan, someone else is responsible for your money and investments, and fraud can easily happen. Opinion: I think that 401K’s are a great idea for people who want to have a secure retirement without worrying about money. It has drawbacks, but what investment really doesn’t these days.