Smart Retirement Planning Includes Considering A Roth IRA
The recent and sometimes current turbulence in the global economy has caused millions of workers to think twice about how they plan on saving for retirement. The importance of making good financial decisions now will determine the quality of life and enjoyment you will have when you are no longer working. Don't be like those who did not save when they were younger and now find themselves working well into their 80's, and consider opening a Roth IRA to compliment your future social security income.
A Roth IRA is designed to help working Americans save for the future while allowing for tremendous tax benefits to be realized along the way. The way it works is that you can fund your account after you pay you income tax, and then that's it. No more taxes (unless you withdrawal early), and you can keep the wealth you earn instead of throwing it away to the government. Not only that, but you can start to take money out of your account penalty free after five years. That means that you don't have to wait until you reach retirement age to enjoy the benefits of savings.
A Roth IRA is a smart, safe and highly effective tool that anyone should have in their investment portfolio, and it is important to discuss this option with a trusted and experienced financial advisor. They can help you to find the best investment and savings options that will work for you while minimizing your risk. A mutual fund is a great way to fund your Roth IRA, and it will help to ensure that your investment is safe and performing at a predictable rate.
Keep in mind that you have to use income to fund your account. Also, the income you put into the Roth IRA must not exceed the amount of money you earned in that year. This is not applicable for most working Americans, however those who earn some money from a part time job may need to make sure that their deposits fall into the income guidelines. Another consideration is that you can only put in 5k per year right now. Occasional increases are possible down the line, but for now, investors are limited to that particular amount.
However, over the long term, that amount can translate into tremendous returns which can help to ensure that you have enough money when it comes time to retire. Making a small sacrifice for savings will help to offset the need to work to survive once you approach retirement age. A Roth IRA is one of the friendliest and smartest investment tools to take advantage of, and there is no time like the present to get started. Talk to your financial planner today to see how this can work to your advantage.
Make good and sound financial decisions today, and enjoy a well funded future, especially with opening a Roth IRA account. Minimize your tax liability and ensure you are financially secure when the time comes to do other things besides working.
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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