The Roth IRA Offers Simple And Smart Retirement Funding
No matter what kind of financial situation you will find yourself in when it comes time to retire, the bottom line is that you will need quite a bit of money saved in order to enjoy financial freedom for the later part of your life. While social security is a good basic resource that will cover some expenses, it is most definitely not going to be enough to provide for any sort of comfortable or enjoyable life. In fact, if inflation and cost of living increases continue the trend they are on now, there is no way that social security alone will be enough. This is why the Roth IRA was created, and it provides a simple, easy to understand, and affordable way to save up for retirement.
The Roth IRA allows workers to contribute up to 5k per year (6k if you are over 60) towards your retirement as long as you are earning roughly 100k or less annually. This is not that different from other retirement accounts with a couple of exceptions. First you can enjoy substantial tax savings when you start taking money out of your account when you decide to retire, and you can start taking money out after five years without incurring penalties for doing so. Because of this simple fact, many people have opened a new or converted their traditional IRA account to a Roth IRA savings plan and they are glad they did.
Not only can you invest in almost anything, many firms make it easy to stash some cash away every month. In fact, you can open a Roth IRA account with little or no money in the beginning, and companies offer a wide range of monthly deposit options to keep building up your savings. Whether you want to use funds from your paycheck or purchase mutual funds, you have numerous options available that can turn your retirement into a pleasure as your money worries start to disappear.
The key to a well funded retirement is to start saving as early as possible. In fact the younger you start, the wealthier you will be when you decide to stop working. That's not to say that older Americans cannot enjoy the same benefits, because they can, however it is better to start younger and make the most of the financial benefits you will enjoy through the advantages of a Roth IRA account.
Even if you can only put away a couple of hundred dollars a month, over the course of your working life that can translate to hundreds of thousands you can have at your disposal for living expenses, pleasure trips or simply the peace of mind knowing that you have money saved for a rainy day once you retire. Get started with a Roth IRA today and see how it can transform your financial portfolio now and your retirement outlook later, because none of us should have to worry about making ends meet once we have had enough of the rat race and finally want to enjoy life.
About the Author
Casey Trillbar is the editor of YourRothIRAGuide.com, which is a website aimed at supplying articles, information and resources to people considering the use of a Roth IRA Agreement for their retirement. http://www.YourRothIRAGuide.com
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