Individual retirement and college savings accounts

Retirement Account

An Individual Retirement Account (IRA) is an investment option that gives big tax breaks to investors, which makes it one of the best investments for retirement. An IRA account in itself is not an investment, but it acts as a portfolio for keeping bonds, stocks, mutual funds and other securities.

Types of IRA Accounts

·         Traditional IRA Account: -This type of IRA account enables investors to defer deductible taxes until they make withdrawals in retirement.

·         Roth IRA Account: -This account allows investments to grow tax free. A Roth account is funded with money that has been taxed.

·         SEP IRA Account: -This type of traditional IRA account is tailored for self-employed individuals.

·         Simple IRA Account: -Another traditional IRA account suitable for small businesses and self-employed people.

Coverdell College Accounts

This account that allows a maxium of  $2,000 per year in after-tax contributions to be made in a child’s name. These contributions can be withdrawn tax-free for qualified educational expenses. If the money is not used by the time the child turns 30 it has to be given to them or rolled over to a Coverdell ESA for another family member.

Eligible Expenses   

  • Tuition, Room, and Board

  •    Computers and Laptops (even if not required by the school)

  •    Books and Supplies

  •    Tutoring

  •    Transportation

Employee benefits

Retirement Accounts

·         401 (K), 403 (B) And 457 Employer Plans: -These types of plans are convenient for average people because the employer chooses the financial institution that will host the account.

·         Solo 401 (k): - Individual 401 (k) accounts are suitable for sole proprietors or people working together with their spouses.

·         Simplified Employee Pension: -This account is suitable for self-employed people and owners of small businesses.  

College Savings Account for Businesses

College saving accounts for businesses allows families and organizations to save money on behalf of their beneficiaries. The fund can be used to pay for college education expenses in private, public, elementary, secondary, and religious institutions.

Small business investment fund

Venture Capitalism

Partnering with a venture capitalist means that a business owner gives up a portion of their business in exchange for capital. The business owner will then have to create room for the representative of the venture capitalist in the Board of Directors.

Angel Investors

Angel investors comprise individuals or groups of wealthy people looking for opportunities to invest in ventures with high returns. This means that Angel investors are very stringent when choosing a business to invest in.

Institutional/Accredited LP Funds

Institutional/Accredited LP Funds

Institutional or accredited LP funds refer to a host of private funds such as venture capital funds, private equity funds and hedge funds. Institutional/accredited funds are regulated by several federal laws, including the Security Act (1933), the Security Exchange Act (1934), the Investment Adviser Act (1940), and the Investment Company Act (1940).

Types of Institutional/Accredited LP Funds

Accredited Investors: -allow investors to buy interests/shares in organization registered as partnerships or limited companies.

Qualified Clients: -These are investors in private funds that receive a management fee determined by the percentage of assets under their management. For an investor to qualify for the fee he/she must manage at least 2% of the share.

Qualified Purchaser: -They include family-owned businesses, individual businesses, and trusts among others.