Home > Resources > Investor Education

Investor education

Investors need financial strategies that consider market changes. Creating these strategies requires thoughtful planning and a financial partner who's dedicated to your success. Invesco has education and tools to help create these strategies.

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

Below is a hypothetical story of the Joneses and the Smiths. Both couples wanted enough savings to live comfortably in retirement. The Joneses started making contributions right away. The Smiths decided to wait.

Download the PDF

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

Learn more

Order investor education literature

Compelling Wealth Management Conversations

Insights to help manage clients’ emotions and keep them buckled-in to their long-term investment plans.

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.

What's the real return on CDs?

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

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Most people invest in tax-deferred accounts — such as 401(k)s and traditional IRAs — to defer taxes until money is withdrawn, ideally at retirement when both income and tax rate usually decrease.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.

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.

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.

Download the PDF

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