Sunday Motivation

Wishing everyone a Happy Sunday. Today’s message is about learning to trust God’s Plan for your life. Don’t put a period where there should be a comma and don’t put a comma where there should be a period. Have a fruitful and rewarding day.

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Sunday Motivation

Spend some time identifying your goals. Break goals down by categories, such as short term goals, midterm goals, and long term goals. You may break your long term goals into midterm goals. Break midterm goals down into weekly goals and break your weekly goals down into daily goals. Always maintain a written plan.

We learn better with the Power of collaboration. Share your goals with others in comments. Let’s inspire, encourage, and delight one another. Leave a sprinkle Of love wherever you go. Remember to record your goals in your journals. Also, record all daily spending, ideas, thoughts, etc.

Keep a journey and track your daily goals. Even on a Sunday, keep a daily goal in your daily agenda. Have a great day #happy #sunday #goals #life #lifestyle #instagram #instagramhub #motivation #inspiration #work #workout #entrepreneur #business #nyc #mood #quotes #success #dreams #planneraddict #teachersofinstagram #blogger #follow #likeforlikes #wordpress

Monday Motivation March 18, 2019

If you woke up this morning WITHOUT A GOAL, that is DEEP.

What I would RECOMMEND is that you close your eyes and go back to SLEEP.

Tell your Dreams to Gather around and Flock the SHEEP.

YOUR ATTITUDE WILL DETERMINE YOUR ALTITUDE

Have Goals and Execute. Have A Great Week

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Color Blindness

I’m watching the Golden State Warriors game and they’re one of my favorite teams. Tonight they’re playing Phoenix and I love watching the Warriors play but me being color blind it affects my eyes. Like the colors together make the yellow so bright that it almost blinds me and distracts my eyes. What are your thoughts. Other people that are color blind? #wordpress #linkedin #nba #colorblind #colors #facebook #basketball #sports

Sunday Motivation

Master the ability to change your perceptions, the way you perceive things, and you will begin to see your reality change. Perceptions are not reality. The way you perceive things has a direct effect on your realities. This is why people can look at the same picture and have different interpretations. Master and Control your mind. Always live in reality. Gian Michael Simmons. Happy Tuesday. #wordpress #linkedin #motivation

Tuesday Motivation

Master the ability to change your perceptions, the way you perceive things, and you will begin to see your reality change. Perceptions are not reality. The way you perceive things has a direct effect on your realities. This is why people can look at the same picture and have different interpretations. Master and Control your mind. Always live in reality. Gian Michael Simmons. Happy Tuesday. #inspiration #motivation #tuesday #life #lifestyle #blogger #instagram #instagood #quote #entrepreneur #business #college #work #workout #nyc #newyork #follow #instalove

Saturday Motivation

Our dreams are based upon our gifts, talents, and purpose. Your dreams require a complete and undying faith. Everyone has a unique and marvelous purpose in life. We all have dreams and not all dreams are alike. Everyone is entitled to dream, so dream BIG. Your dreams are You. So be all that you can be and not just a shell 🐚 of the person we were created to be.

God and the Universe will reveal things to our eyes 👀 that will astonish and bewilder the common man. We, all, have our own Revelations. Depending on your level of self actualization, consciousness, and connectivity to the world’s around us, your dreams may be so bright that you may feel blinded on sight. Don’t ever be afraid 😱 of your dreams and transcripts of the eyes. Open your eyes, see, and live your dreams.

Whether BIG or small, Your Dreams can be reality. Dream BIG and NEVER GIVE UP ON YOU. Don’t expect everyone to be equipped with your same vision, Faith, conviction, and eyesight. Have Faith and Believe in Yourself and Your Dreams. Have faith that surpasses understanding. Let’s abolish nightmares and daymares. Do Not Be Afraid Of Your Dreams ⭐️ and Don’t Be Afraid to Open Your EyEs 👀 DREAM EYES WIDE OPENED 👀

I’ll get deeper in next posts. Stay tuned.

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What are your thoughts and comments you can share to help motivate and inspire others that are tuning in. #Comment #Comments #facebook #instagram #motivation #inspiration #linkedin #entrepreneur #business #planner #dreams #goals #wordsofwisdom #life #love #lifestyle #millionairemindset #success #america #encouragement #future #bright #follow #blog #nyc #work #workoutmotivation #daily #instafollow #like4like

Retirement Planning

Individual Retirement Accounts (IRAs) provide the opportunity to grow money on a tax-deferred basis. An IRA can be thought of as an individual savings account with tax benefits. You open an IRA for yourself (that’s why it’s called an individual retirement account) and if you have a spouse, you’ll have to open separate accounts. An important distinction to make is that an IRA is not an investment itself; rather, it is an account where you keep investments such as stocks, bonds and mutual funds. You get to choose the investments in the account, and can change the investments if you wish. Your return depends on the performance of the investments held in the IRA. An IRA continues to accumulate and grow, tax free, based upon your contributions and the growth of the account.

How Banking IRAs Work

Step 1: Choose Your Product

With an IRA with Citibank, you can choose from two types of deposit accounts: Insured Money Market Accounts or Certificates of Deposit (CDs). Both are FDIC-insured and have no monthly fee.

Step 2: Choose Your IRA Type

Whether you opt for a Traditional IRA or a Roth IRA, you’ll get potential tax advantages to help you generate greater returns.

Step 3: Start Funding Your Account

Open your account with an initial contribution. You can add funds any time up to the annual contribution limit allowed to help your retirement plan grow.

Feel free to contact me for a Free and Confidential Conversation regarding Your Retirement Planning and Securing Lifetime Income

Gian Michael Simmons

Wall Street – Vice President

Wealth Management

#finance #facebook #financialfreedom #invest #bank #learn #wealth #wisdom #retirement #family #friends #life #love #motivation #nfl #nba #doctor #dentist #actor #actress #music #producer #artist #follow #wordpress #linkedin

Retirement Planning/IRS Limits 2019

Gian Michael Simmons

Wealth Management Vice President

Retirement Planning

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2019:

• For single taxpayers covered by a workplace retirement plan, the phase-out range is $64,000 to $74,000, up from $63,000 to $73,000.

• For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $103,000 to $123,000, up from $101,000 to $121,000.

• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000, up from $189,000 and $199,000.

• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is $122,000 to $137,000 for singles and heads of household, up from $120,000 to $135,000. For married couples filing jointly, the income phase-out range is $193,000 to $203,000, up from $189,000 to $199,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $64,000 for married couples filing jointly, up from $63,000; $48,000 for heads of household, up from $47,250; and $32,000 for singles and married individuals filing separately, up from $31,500.

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Thank You for your following

Have A Great Year

Focus on your goals and talents

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The Power Of Praise

Wishing all a great day. Happy Friday. May your day be filled with The Power Of Praise and Gratitude. Whatever you are in, You Can Get Out Of…Learn how to nurture a spirit of Thanksgiving and Gratitude. Learn how to Praise Your Way To Victory. Thank God for Life and Love. Have A Great Day. #instagram #instagood #have #haveagoodday #life #lifequotes #quotes #motivation #inspiration #inspire #thoughts #love #work #workout #claim #your #victory #praise #god

116 Congress convenes with the most diverse class of lawmakers

116 Congress convenes with the most diverse class of lawmakers

A day of historic firsts in Congress – Congress just got more diverse.

The 116th Congress is the most diverse in U.S. history, with new House members breaking ground for women as well as for minority and LGBTQ representation.

More than 100 women were sworn into the House of Representatives — a new record — and many of them are breaking ground when it comes to race and sexuality, too. And House Democrats voted in Rep. Nancy Pelosi, D-Calif., as speaker, the only woman to have ever held the role.

Congratulations to all of our Elected Officials and thank you to all those that voted. Let’s have a awesome year!

Gian Michael Simmons/Wall Street/Music/Film

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Happy Holidays- Year End Financial Tips

Wishing everyone a Merry Christmas and Happy Holidays. Some holiday financial tips. Always have a plan and stay disciplined. Don’t allow yourself to emotionally or last minute shop unless it makes financial sense. Create plans. Review your year end financial statements with a professional financial advisor. Update your wills and beneficiaries. Review Estate and Trust documents. Power of Attorneys and I recommend that everyone have a medical proxy filed with all medical facilities. Review/create end of life plans. Be proactive and not reactive. . As always, enjoy your holidays from @gianmichaelsimmons Follow Gian Michael Simmons on LinkedIn, Facebook, WordPress, Instagram, Tumbler. New to social media, over 100,000 and growing. Let’s reach 1,000,000,000 in 2019.

Contact me for a confidential and complimentary review from a professional Financial Advisor. Vice President Citi Personal Wealth Management

Book and Music 🎶 Coming 2019

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The importance of a will

Having a will is arguably one of the most important things you can do for yourself and your family. Not only can a will legally protect your spouse, children, and assets, it can also spell out exactly how you would like things handled after you have passed on.

While each person’s situation varies, here are the top ten reasons to have a will.

1) You decide how your estate will be distributed. A will is a legally-binding document that lets you determine how you would like your estate to be handled upon your death. If you die without a will, there is no guarantee that your intended desires will be carried out. Having a will helps minimize any family fights about your estate that may arise, and also determines the “who, what, and when” of your estate.

2) You decide who will take care of your minor children. A will allows you to make an informed decision about who should take care of your minor children. Absent a will, the court will take it upon itself to choose among family members or a state-appointed guardian. Having a will allows you to appoint the person you want to raise your children or, better, make sure it is not someone you do not want to raise your children.

3) To avoid a lengthy probate process. Contrary to common belief, all estates must go through the probate process, with or without a will. Having a will, however, speeds up the probate process and informs the court how you’d like your estate divided. Probate courts serve the purpose of “administering your estate”, and when you die without a will (known as dying “intestate”), the court will decide how to divide estate without your input, which can also cause long, unnecessary delays.

4) Minimize estate taxes. Another reason to have a will is because it allows you to minimize your estate taxes. The value of what you give away to family members or charity will reduce the value of your estate when it’s time to pay estate taxes.

5) You decide who will wind up the affairs of your estate. Executors make sure all your affairs are in order, including paying off bills, canceling your credit cards, and notifying the bank and other business establishments. Because executors play the biggest role in the administration of your estate, you’ll want to be sure to appoint someone who is honest, trustworthy, and organized (which may or may not always be a family member).

6) You can disinherit individuals who would otherwise stand to inherit. Most people do not realize they can disinherit individuals out of their will. Yes, you may wish to disinherit individuals who may otherwise inherit your estate if you die without a will. Because wills specifically outline how you would like your estate distributed, absent a will your estate may end up on the wrong hands or in the hands of someone you did not intend (such as an ex-spouse with whom you had a bitter divorce).

7) Make gifts and donations. The ability to make gifts is a good reason to have a will because it allows your legacy to live on and reflect your personal values and interests. In addition, gifts up to $13,000 are excluded from estate tax, so you’re also increasing the value of your estate for your heirs and beneficiaries to enjoy. Be sure to check the current laws for your year to learn the most up-to-date gift tax exclusions.

😎 Avoid greater legal challenges. If you die without a will, part or all of your estate may pass to someone you did not intend. For example, one case involved the estate of a deceased son who was awarded over $1 million from a wrongful death lawsuit. When the son died, the son’s father – who had not been a part of his son’s life for over 32 years – stood to inherit the entire estate, leaving close relatives and siblings out of the picture!

9) Because you can change your mind if your life circumstances change. A good reason for having a will is that you can change it at any time while you’re still alive. Life changes, such as births, deaths, and divorce, can create situations where changing your will are necessary.

10) Because tomorrow is not promised.

Dollar cost averaging and compound interest

Most of us don’t have $10,000 to invest at 20. (In fact, many are inundated with debts, but we’ll get to that in a minute). This is where dollar cost averaging is invaluable.

The technicalities of dollar cost averaging are simple. You invest a set amount of money on a regular basis. You set it up so it’s automatic, ideally coming out of your account on payday, and ultimately you don’t even miss the money.

For example, let’s say you invest $200 a month, starting at age 20, with an average rate of return of 8% per year. By the time you’re 60, it’s worth $648,361, and the money you invested totals $96,000.

If you wait until 30, your $200 per month would be worth $283,522; to get the same $650,000 if you’d started at 20, you’d need to invest $430 per month, totaling $154,800.

If you wait until 40, your $200 per month is worth $114,532 at 60, and to get the same $650,000 you’d need to invest $1,100 per month, totaling $264,000.

In addition to compound interest and ease of investing automatically, dollar cost averaging is about getting a good rate of return in a variable market. Most of us don’t have the time, inclination, or expertise to time the markets, nor do we have the stomach to buy at the best time — which is when the market is tanking. Over time, dollar cost averaging allows you to take advantage of all markets, without having to watch stock prices or play the (dangerous) game of market timing. #money #save #compound #interest #education

Individual Retirement Accounts

Individual Retirement Accounts (IRAs) and annuities both provide the opportunity to grow money on a tax-deferred basis, but there are differences between the two. An IRA can be thought of as an individual savings account with tax benefits. You open an IRA for yourself (that’s why it’s called an individual retirement account) and if you have a spouse, you’ll have to open separate accounts. An important distinction to make is that an IRA is not an investment itself; rather, it is an account where you keep investments such as stocks, bonds and mutual funds. You get to choose the investments in the account, and can change the investments if you wish. Your return depends on the performance of the investments held in the IRA. An IRA continues to accumulate and grow, tax free, based upon your contributions and the growth of the account.

IRAs are defined and regulated by the IRS, which sets eligibility requirements, limits on how and when you can make contributions, take distributions, and determines the tax treatment for various the various types of IRAs. For example, for 2018 the maximum you can contribute to your traditional or Roth IRA is the smaller of $5,500 ($6,500 if you’re age 50 or older) or your taxable income for the year. Traditional IRA regulations allow you to take early withdrawals under certain circumstances, and if you have a Roth, you can withdraw contributions at any time, but will pay a penalty if you withdraw any interest earnings.

Conversely, annuities are insurance products that provide a source of monthly, quarterly, annual or lump sum income during retirement. An annuity makes periodic payments for a certain amount of time, or until a specified event occurs (for example, the death of the person who receives the payments). Unlike an IRA, which can have only one owner, an annuity can be jointly owned. Annuities do not have the annual contribution limits and income restrictions that IRAs have.

You can “fund” an annuity all at once – known as a single premium – or you can pay over time. With an immediate annuity (also called an income annuity), fixed payments begin as soon as the investment is made. If you invest in a deferred annuity, the principal you invest grows for a specific period of time until you begin taking withdrawals – typically during retirement. Annuities typically have higher expenses than IRAs, and if you take early withdrawals you’ll owe a penalty. #retirement #entrepreneur #business #millionaire #goals #planner

How bank IRA’s work

How Banking IRAs Work

Step 1: Choose Your Product

With an IRA with Citibank, you can choose from two types of deposit accounts: Insured Money Market Accounts or Certificates of Deposit (CDs). Both are FDIC-insured and have no monthly fee.

Step 2: Choose Your IRA Type

Whether you opt for a Traditional IRA or a Roth IRA, you’ll get potential tax advantages to help you generate greater returns.

Step 3: Start Funding Your Account

Open your account with an initial contribution. You can add funds any time up to the annual contribution limit allowed to help your retirement plan grow. Contact me for details.#bank #ira #retirement #financialfreedom

Available for positive synergies

Gian Michael Simmons

Financial Advisor Professional Writer

Wealth Management Music Songwriter

Investment Advisor Ghost Writer

Business Development Public Speaker

Artist and Designer Creative Genius

Branding Leadership

Specialize working with governments, institutions, colleges, schools, charities, trusts, high net worth individuals, doctors, professional athletes, music industry, celebrities, entrepreneurs, and religious institutions. I work for one of the world’s largest banking and financial institutions. I am accomplished Financial Advisor with 17 years experience.

Distinguished and Accomplished Public Speaker and Writer. My words are heard around the world. I can write any content, speeches, sermons, songs, advertisements, marketing, and poetry. I also write, design, and create all the contents on all my posts and profiles. I am a student of words and the engagements of characters. National leader since speaking at the White House and representing NY State in the 5th grade. Active philanthropist and leader.

Branding. The King of Hearts can develop sophisticated and personalized content for you. I maintain confidentiality and professionalism. I believe in the true power of collaboration and working with industry leaders to keep our country great and expand the world. I am always writing and creating.

I can also assist with developing and maintaining creative content in music, fashion, branding, marketing, budgeting, finances, wealth management. I am truly one of a kind and committed to my talents and gifts. It is my gratitude for life and love. My greatest gift to God will be my contribution to speaking life and love all over this land. Allow me to speak Life and Love into your projects, business, dreams, goals, and aspirations. I specialize in sustainability, self- actualization, and longevity.

My professional credentials can be obtained on LinkedIn Gian Michael Simmons – Over 25,000 LinkedIn Connections

New to social media and 50,000 followers and growing. Appreciate all the love

Inbox for a complimentary and confidential conversation

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I Speak Life For You

Writing has been going well. Here’s some leisure reading

READ AND SHARE this piece I wrote and comment your thoughts.

I SPEAK LIFE FOR YOU

By Gian Michael Simmons

I was like it’s kat stacks all over the MAP

On the bus, I saw this dude nodding off, rocking a baseball CAP

I thought to myself, that man is not tired, he is battling a DISEASE

His insides must be crying, man stop, man PLEASE

Free me from all the pain, make life sweet, again, like SAP

Release the shackles, loose the chains, break the TRAP

What you put in life is what you GET

I bet Love’s crying, deep inside, please, man QUIT

But his disease is so wild, it’s BALLING

His mind is trapped to the CALLING

While everything in man’s life is FALLING

You must remember what Whitney said, crack is WACK

Get your life together, man, get your life BACK,

Before you fade to BLACK

Tell your mind to press rewind

Give you HOPE

give you life, now that’s DOPE

The pains in your life, escaping pleasures can not COPE

Now your life is hanging, barely, on thin rope

There’s still a chance for you

My brother, my sister,

I SPEAK LIFE FOR YOU

Be Healed, Be Delivered, Be set Free

My brother, my sister, open your hearts and see

More than a conqueror, you shall always be

And remember,

I speak Life for you

You shall live, you shall not die, all you have to do is try

You shall live, you shall not die

Because,

I speak Life for you

Gian Michael Simmons

Monday Motivation Budget Planning Repost

The goal for 2/13/2018 is to create a monthly budget to account for bills, savings, investments, spending, Goals, and needs.

This can be a simple spreadsheet or a list. Be sure to keep track of your daily spending and keep a record of all spending. You want to know where every dollar earned is going. You also want to learn how to shop smarter and spend less. By itemizing your daily spending, you can begin to learn smarter shopping habits and discipline. Also, try to make a list of desired items that you wish to purchase. This will avoid the last minute binge shopping and allow you the opportunity to look for sales and discounts. If you shop ahead, you also can buy items that are “out of season” and buy things at discounted prices. Make shopping a disciplined experience and avoid “the window shopping”. Also, an idea. When I shop, I create a separate bank account for shopping and only bring that card with me. Try to limit the amount of cash/credit that you have access to while shopping. As always, stick within you set budget and avoid overspending. If you can’t afford it, work harder to be able to comfortably afford what you want.

INTERPLANETARY MINDS

This may go over some heads, drive slow homie.

Real estate your mind, homie

Stretch out those habitations, homie

I’m down to hang with a long GRAY, summons The chariots, feed them some HAY.

UP BEYOND THE EVENING STAR,

THROUGHOUT HEAVEN PEARLY GATES

Take me beyond STARS, You can find up in MARS,

FLASHLIGHT- SHINING STARS

DRIVING SO FAST, SO SLOW

CHASING FERRARI CARS

SHOUT OUTS TO ELON MUSK,

PRAYERS TO THE TUSK

GEE

FILL ALL HEARTS, WITH ALL GLEE

MAKE YOUR LIFE INTERPLANETARY

Motivation

I’M RUNNING STRAIGHT THROUGH THIS GATE,

PASS the Fun, BEYOND the HATE

HEAVEN OPEN, THE FLOODGATE

LET MY VOICE, BE YOUR BAIT

Let my WORKS, RUN through STATE

THE KING OF HEARTS, I will BE

Let Hearts Find, Let Souls SEE

There’s a Place, Where Love is FREE

I Speak Father

I Speak Creator

I Speak Life

I Speak Love

Sent from Heaven, Souls Above

Rocking Mike, MJ The Glove

One Love

One Soul

One God

Back after a brief “social media” vacation. FOLLOW GIANMICHAELSIMMONS ON INSTAGRAM-FACEBOOK AND FACEBOOK GROUPS-LINKEDIN -WORDPRESS-TUMBLER— And GIANMSIMMONS ON TWITTER – VICE PRESIDENT CITIGOLD PERSONAL WEALTH MANAGEMENT-THE POWER OF CITI-GENIUS-KING OF HEARTS-MUSIC SONGWRITER AND COMPOSER-DIRECTOR-WRITER-MOVIE SOUNDTRACKS-GRAMMY FAMILY TIME-SIMMONS FAMILY EMPIRE-FASHION-PHILANTHROPIST-BUSINESS-ENTREPRENEURSHIP-NATIONAL LEADER SINCE 5TH GRADE AT THE WHITE HOUSE -LOTS IN STORE STAY TUNED-GLOBALLY AND ETERNALLY BOUND- SENT FROM FATHER CREATOR TIME #follow #facebook #instagram #twitter #wordpress #tumbler #linkedin

Retirement Accounts

In 2017, you can put a maximum $5,500 in all IRAs combined, or $6,500 if you’re age 50 or older. With a Traditional IRA, you might get an immediate tax deduction, but all withdrawals are taxable as ordinary income. Meanwhile, with a Roth IRA, there’s no immediate tax deduction, but all withdrawals in retirement can be tax-free.

You may also face this choice within your employer’s retirement plan, where you may be able to opt for the Traditional 401(k), with your contributions coming out of pretax income, or you can go for the Roth 401(k), which is funded with after-tax income.

Here’s a brief overview of some factors to consider:

Out of your hands

For those who can’t decide which IRA is better, here’s the good news: You may not have a choice.

If you aren’t covered by a retirement plan at work and you have sufficient earned income, you are always eligible to fund a Traditional IRA, no matter how much you make. But if you are covered by your employer’s retirement plan, you may not be able to deduct all of your Traditional IRA contributions if your income is above the allowable threshold.

Meanwhile, with a Roth IRA, it doesn’t matter whether you are covered by a retirement plan at work. Instead, all that matters is whether your income falls below the threshold for eligibility.

For instance, in 2017, if you’re single and covered by a retirement plan at work, you can only fully fund a tax deductible Traditional IRA if your modified adjusted gross income is $62,000 or less. But you can fully fund the Roth as long as your income is less than $118,000.

Weighing the choice

Still, let’s assume you need to choose between a tax-deductible IRA and Roth account, either within your employer’s plan or when making your annual IRA contribution.

If you expect your tax rate to be lower in retirement, deductible retirement accounts, like the Traditional IRA, would provide you with a tax deduction today when you’re in a higher tax bracket, while putting off taxes until retirement when you hope to pay Uncle Sam at a lower rate.

Conversely, if you expect to pay taxes at the same or a higher rate once retired, you would pass up today’s tax deduction with a Roth IRA to get what should be tax?free withdrawals in retirement.

What if you aren’t sure? You could hedge your bets. Just as you can diversify your portfolio by purchasing a slew of different securities, you might also diversify your tax risk by funding both tax?deductible and Roth accounts.

Four wrinkles

While future tax rates often drive the tax?deductible vs. Roth decision, the Roth offers four additional advantages that you may want to consider.

First, $5,500 saved in a Roth IRA is worth more than $5,500 saved in a Traditional IRA, because you will eventually have to pay taxes on your Traditional IRA. To be sure, you enjoy initial tax savings when you fund a Traditional IRA. That can even the score with the Roth, but only if you make a point of adding those tax savings to your retirement nest egg.

Second, Roth IRA accounts offer flexibility. For instance, your regular annual Roth IRA contributions can be withdrawn at any time for any reason. Just put $5,500 in a Roth IRA. You can pull your $5,500 out tomorrow, with no taxes owed. It’s only if you touch the account’s investment earnings that taxes and penalties are potentially an issue.

Third, unlike with a Traditional IRA, you don’t have to take required minimum distributions from a Roth IRA starting at age 70½. That means you could leave your Roth IRA intact to continue growing tax?free and possibly even bequeath the entire account to your heirs.

Finally, a Roth IRA can make a fine inheritance. Nonspouse beneficiaries of both Roth and Traditional IRAs are required to start taking minimum annual withdrawals soon after inheriting. But while your beneficiaries will have to pay income taxes as they draw down your Traditional IRA, they won’t owe taxes on your Roth IRA. Indeed, if your Roth IRA beneficiaries are careful, they could enjoy years of tax?free growth out of the account.

Trying the backdoor

You may discover that you aren’t eligible for either a tax-deductible or Roth IRA. That means your only choice is a nondeductible IRA, which will still provide tax-deferred growth but no tax deduction. When you draw down the account in retirement, you will have to pay income taxes on the account’s investment gains, though you won’t owe taxes on the dollars you originally contributed.

INVESTMENT AND INSURANCE PRODUCTS: NOT INSURED BY THE FDIC • NOT INSURED BY THE FEDERAL GOVERNMENT OR ANY OTHER FEDERAL GOVERNMENT AGENCY, BY THE BANK, OR BY ANY AFFILIATE OF THE BANK • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR AN AFFILIATE OF THE BANK • SUBJECT TO INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL INVESTED

The information provided here is for informational purposes only. It is not an offer to buy or sell any of the securities, insurance products, investments, or other products named.

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Individual Retirement Accounts and Annuities

Individual Retirement Accounts (IRAs) and annuities both provide the opportunity to grow money on a tax-deferred basis, but there are differences between the two. An IRA can be thought of as an individual savings account with tax benefits. You open an IRA for yourself (that’s why it’s called an individual retirement account) and if you have a spouse, you’ll have to open separate accounts. An important distinction to make is that an IRA is not an investment itself; rather, it is an account where you keep investments such as stocks, bonds and mutual funds. You get to choose the investments in the account, and can change the investments if you wish. Your return depends on the performance of the investments held in the IRA. An IRA continues to accumulate and grow, tax free, based upon your contributions and the growth of the account.

IRAs are defined and regulated by the IRS, which sets eligibility requirements, limits on how and when you can make contributions, take distributions, and determines the tax treatment for various the various types of IRAs. For example, for 2018 the maximum you can contribute to your traditional or Roth IRA is the smaller of $5,500 ($6,500 if you’re age 50 or older) or your taxable income for the year. Traditional IRA regulations allow you to take early withdrawals under certain circumstances, and if you have a Roth, you can withdraw contributions at any time, but will pay a penalty if you withdraw any interest earnings.

Conversely, annuities are insurance products that provide a source of monthly, quarterly, annual or lump sum income during retirement. An annuity makes periodic payments for a certain amount of time, or until a specified event occurs (for example, the death of the person who receives the payments). Unlike an IRA, which can have only one owner, an annuity can be jointly owned. Annuities do not have the annual contribution limits and income restrictions that IRAs have.

You can “fund” an annuity all at once – known as a single premium – or you can pay over time. With an immediate annuity (also called an income annuity), fixed payments begin as soon as the investment is made. If you invest in a deferred annuity, the principal you invest grows for a specific period of time until you begin taking withdrawals – typically during retirement. Annuities typically have higher expenses than IRAs, and if you take early withdrawals you’ll owe a penalty.