Dear Ebony,

I am writing to you today to discuss your retirement planning options. As a self-employed individual, you have a few different options available to you, including traditional IRAs, Roth IRAs, and Keogh plans.

Traditional IRAs are tax-deferred retirement plans. This means that you can contribute money to your IRA before taxes are taken out, and your money will grow tax-deferred until you withdraw it in retirement. When you withdraw money from a traditional IRA in retirement, you will pay taxes on the earnings.

Roth IRAs are after-tax retirement plans. This means that you contribute money to your Roth IRA after taxes have been taken out, and your money will grow tax-free until you withdraw it in retirement. When you withdraw money from a Roth IRA in retirement, you will not pay taxes on the earnings.

Keogh plans are retirement plans for self-employed individuals. Keogh plans can be either traditional or Roth, and they offer a variety of features that can be tailored to your specific needs.

Here are some factors to consider when choosing a retirement plan:

• Your age: If you are younger, you may want to consider a Roth IRA because your earnings will have more time to grow tax-free. If you are older, you may want to consider a traditional IRA because you may be in a lower tax bracket in retirement.
• Your income: If your income is high, you may not be able to contribute to a Roth IRA.
• Your risk tolerance: If you are comfortable with risk, you may want to invest your retirement money in the stock market. If you are not comfortable with risk, you may want to invest your retirement money in safer investments, such as bonds.
• Your liquidity needs: If you think you may need to access your retirement money early, you may want to choose a plan that allows you to do so without penalty.

Your concerns about fluctuations in the market are valid. The stock market can be volatile, and your retirement savings could lose value if the market takes a downturn. However, over the long term, the stock market has historically trended upwards. If you are investing for retirement, you should have a long-term horizon and not worry about short-term fluctuations in the market.

As for your question about accessing your retirement money, there are some restrictions on withdrawals from retirement plans. For example, you may have to pay a penalty if you withdraw money from a traditional IRA before age 59 1/2. However, there are exceptions to these restrictions, such as if you use the money to pay for qualified education expenses or to purchase a first home.

Finally, your employment by Marley Enterprises may affect your ability to contribute to a Keogh plan. Keogh plans are only available to self-employed individuals, so if you are covered by Marley’s corporate plan, you may not be able to contribute to a Keogh plan.

I recommend that you speak with a financial advisor to discuss your specific situation and to get personalized advice on the best retirement plan for you.

Sincerely, [Your name]