WHAT INVESTORS WANT IN AN IRA

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

The individual retirement account is one of the top choices for retirement planning. That fact was confirmed in a survey by Zurich Kemper Investments.

Kemper asked its shareholders their opinions on IRAs and received one of the strongest responses ever. Respondents were asked to rank from one to nine their preferences for retirement planning, including savings accounts, government -- securities and other investments. IRAs placed second in the ranking, behind pretax employee plans such as 401(k)s and 403(b)s. Twenty-three percent of the survey respondents ranked IRAs their top retirement planning method, and 36 percent said IRAs were their second choice.

What's the appeal of the IRA? More than 60 percent of those surveyed said building a retirement account that compounds free of taxes is the biggest benefit. Only 32 percent viewed the annual tax-deductible contribution most important.

The survey also asked opinions on ways Congress could enhance IRAs. Sixty-seven percent of respondents favored an increase in the annual contribution limit. A close second (60 percent) wanted higher income eligibility limits for deductible contributions. Two other features respondents wanted were tax-free withdrawals (29 percent) and the ability to use IRAs for more than retirement (30 percent). To some degree, these needs are addressed by the new Roth IRA.

The Kemper survey reveals that investors are taking retirement planning seriously -- as they should be. Future retirees may face a different financial environment than today's retirees. Will Social Security be there? How about Medicare? How will investments be taxed? Will your company retirement plan -- if you even have one -- provide enough?

The message is clear: Responsible working taxpayers must plan their own retirement. Fortunately, Americans have several good opportunities to do so. If you aren't yet participating, you owe it to yourself and your family to start today.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.