Deciding which retirement plan to choose can be a difficult decision. There are options for every type of situation, and you need to assess both your financial needs and the available plans before you decide. Three plans that work well for many people are the 801(k) plan, the 401(a) plan, and the Pinchot plan.

Though you’ve likely heard of a 401(k) plan, the 801(k) retirement plans are cropping up as an interesting way to add to a retirement portfolio. This supplemental plan allows for an individual to purchase stocked directly from a company. Rather than going through a stockbroker, this plan allows you as the investor to keep more of your returns.

The benefit of the 801(k) retirement plans, which is not an official name, is that the stock broker’s share of returns is eliminated from the financial calculators used to determine how much an individual has made. Instead of paying a percentage of all earnings to the broker, the person making the investment in 801(k) retirement plans will reap all of the benefits. These plans typically boast a return rate at close to 12 percent, which is higher than average. While this plan is a great choice for many employees, but someone in an executive position may be able to take advantage of the 401(a) plan.

The 401(k) plan is named for a certain section of the IRS code which allows for employees to sponsor investment plans to which employees can contribute. Among the lesser-known plans is the 401(a) plan. This plan permits employers only to contribute money as a supplemental benefit to certain employees. These will receive a deferred benefit for working for the company in the way of these directed funds. Few employees will be in a position to get this type of plan, but company-sponsored pension plans still exist in some industries. Some state employees, for instance, are able to use the Pinchot plan for retirement.

Another plan out there is the Pinchot retirement plan. These plans are from government insurance programs sponsored through the state of Pennsylvania. With this type of plan, the government puts money into very specific companies that hold forests and other acreage that can be used for its natural and renewable resources. These companies make excellent returns, giving retired employees in Pennsylvania excellent retirement plans.

Because these retirement plans are directed programs, they do require some activity on the part of individuals who want to invest in them. The 801(k) plan, for instance, requires an understanding of each company’s financial footing.  In most cases, the investor will need to own at least one share of stock in the company before being allowed to participate in the more lucrative direct investing. The company often is willing to help with this initial purchase.

The decision to participate in plans such as these is ones investors should make after careful consideration and examination of the company. As with any retirement plans, getting involved in investment can boost earnings significantly but does carry some risk. You need to make a careful comparison of the various plans available to you. Your best bet against this risk is to make sure you have done your research on all plans you are considering before investing but to consider the 801(k) retirement plans in your investing.