Investor education

As an investor, you need a financial strategy that's built to meet your needs no matter what the markets are doing. Meeting that challenge requires thoughtful planning, deliberate action and a financial partner who's dedicated to your success. From tax considerations to asset allocation solutions to choosing the right IRA, Invesco provides you with the tools you need to help make difficult investing decisions a little easier.

Why you can't afford to wait to save for retirement

Below, we look at the hypothetical stories of the Joneses and the Smiths. Both couples had the same goal: To accumulate enough of a nest egg to live comfortably in retirement. The Jones started making contributions right away. The Smiths decided to wait.

Each couple contributes per year in their 401(k):

Source: Invesco, easycalculation.com and investopedia.com. This hypothetical example and estimate of an 8% average annual total return are for illustrative purposes only and are not intended to represent the actual performance of any particular investment product or real investor. Your actual return isn't likely to be constant from year to year, and there is no guarantee that a specific rate or return will be achieved.

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Can the market make you rich?

Explains why contributions matter much more than investment returns.

From A to Z: Decoding common financial terms

Dip into the alphabet soup of financial terms.

Why you can't afford to wait to save for retirement

The sooner you start, the easier your path may be.

Understanding asset class performance: Building a better block chart

Introduces a better way to view asset class performance — by economic environment.

What's the real return on CDs?

This flyer looks at the returns on CDs after inflation and taxes are taken into account.

The importance of dividends and stock investors

Understanding dividends and how they can be beneficial in an allocation.

Understanding the differences between long and short investing

Examines the basics of short-selling in a portfolio.

Hedging: Managing potential outcomes in the market

Discusses the use of hedging in a portfolio to potentially reduce risk.

Back to the futures

Overview of how investors may use futures in their portfolios.

A planning checklist: Your total financial picture

A checklist designed to get you thinking about the entire range of financial needs-not just investments- so you can participate in building a plan for financial security.

Broaden your investment horizons

Explores the advantages of diversifying your portfolio to include international markets.

What's so smart about smart beta?

As an investor, you may increasingly hear the term "smart beta."

Taxes: Pay now or later?

Most people invest in tax-deferred accounts — such as 401(k)s and traditional IRAs — to defer taxes until money is withdrawn, ideally at retirement when both income and tax rate usually decrease. And that makes good financial sense because it leaves more money in your pocket. But consider this: If tax rates rise considerably by the time you retire, does tax-deferred investing — rather than paying taxes now — still make sense?

Analysis and finding

For this hypothetical situation, we assumed the following:

  • An original investment of $50,000
  • 30 years of tax-deferred growth versus taxable growth
  • 6% annual growth rate on assets
  • 25% tax rate during years prior to retirement
  • 25% to 42% tax rates at retirement

The finding: Tax deferral can still make sense when you face higher income tax rates on withdrawals during retirement.

Hypothetical tax Rate at retirement1 (%):

1 These were some of the actual tax rates paid by middle income earners between 1972 and 2012.
2 After-tax account value.
3 This is the net amount and assumes the investors paid the hypothetical tax rate at retirement on all earnings.
Federal and state penalties may apply for early withdrawals from an IRA or annuity.

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Taxes: Pay now or pay later

After federal and state taxes and inflation, find out what your investments need to return in order to break even.

The impact of taxes: What you need to break even

Shows total returns by state after federal taxes at 35%, state income taxes and 3% inflation.

Why rollover?

Life is full of changes. And when those changes involve your financial future, you need to make sure your savings stay on track. If you're preparing to leave your current job, start a new job or retire, it may be beneficial to consider a rollover IRA that will potentially keep your savings working for you.


Benefits for you Things to consider
Preserves tax advantages No loan provisions
No tax penalties No consolidation of retirement assets
Potentially more investment choices Ongoing contributions generally not permitted
Early distribution withdrawal options
for certain situations
Required minimum distributions (RMDs) begin
at age 70½
Flexible distribution options Expenses and fees may be higher
Potential estate planning benefits If rolled over indirectly, taxes and penalties
could apply to amounts not rolled over within
60 days.
Professional investment assistance
from your financial advisor
 
Benefits for you Things to consider
Consolidates retirement assets Potentially limited investment options
Preserves tax advantages and
avoids early withdrawal penalties
Potentially limited withdrawal options
May be eligible to take withdrawals
at age 55 in certain situations
Subject to all provisions of new plan
May provide loan provisions Generally, no professional investment
assistance provided by plan
  Generally, RMDs begin at age 70½ plan may
permit nonowner employees to delay RMDs until
after 70½ if they continue active employment
Benefits for you Things to consider
Ease and simplicity Potentially limited investment options
Preserves tax advantages and
avoids penalties
No consolidation of retirement assets
May be able to take withdrawals
at age 55 in certain situations
You may have to contact your former
employer for any questions or help
May provide loan provisions Generally, no professional investment
assistance provided by plan
  Generally, RMDs begin at age 70½ plan may
permit nonowner employees to delay RMDs until
after 70½ if they continue active employment
Benefits for you Things to consider
Easy access to assets In most cases, the entire amount is federally
taxed as ordinary income
  Loss of tax-deferred growth potential
  10% early withdrawal penalty if you're under 59½
  State and local taxes may be due
  20% mandatory up-front federal income tax
withholding

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Why Rollover

If your job status changes it might be time to consider a Rollover IRA

Traditional or Roth: Which IRA is right for you?

You know what they are. You think you should have one. But which IRA is right for your retirement?

Test your knowledge: The importance of naming beneficiaries

How much do you really know about the rules regarding beneficiaries?

Planning for long-term care: Budgeting for the unknown

Reasons you may want to consider long-term care insurance as part of your retirement planning.

Today's choices, tomorrow's income

Three things you need to know about building retirement income.

Understanding the role of cash in your portfolio

Perhaps no other asset class elicits such mixed feelings among investors as cash. In bull markets, cash is shunned. In bear markets, it's embraced. Having a better understanding of the role cash plays in your financial program and its relationship to stocks and bonds is a critical step toward reaching your financial goals.

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Understanding the role of cash in your portfolio

A good understanding of the role cash plays in your portfolio is critical for your retirement.

Diversifying your portfolio: Finding an asset allocation that's right for you

Understanding the importance of creating an appropriate asset allocation.

Risk tolerance: Facts should trump emotions

Discusses emotions vs. facts and how true risk tolerance is based on a person's financial ability to take risk, not their emotions about risk.

Keeping up with the growth of the world's middle class

Discusses the world of investment opportunities beyond the US shores.

Learning from history: Bulls, bears and boomers

How bull markets shaped baby boomers' unrealistic perception of investment risk

Managing your risks through income diversification

The challenge as an income investor is to increase your chances for reward while keeping risk in check.

Innovative investment solutions for your portfolio

Why consider investing in a unit trust?

Interest rate risk: Why duration matters

Explains what happens to the price of bonds if interest rates rise or fall.