Am I Too Young To Have An IRA?
The simple answer is “NO!” My very first job was working at McDonald’s as a cashier in high school. I’d make about $100/week and spend it on food or clothes since I didn’t have a lot of other expenses at the time. Now that I’m in my 20s, I look back and wonder why I didn’t save at least $25 of each paycheck. Well, I know why. I wasn’t thinking about saving for a house, paying off student loans, buying a car, or retirement! I didn’t know anyone who was thinking about these things as teenagers.
Now that I’m working full-time in my career, future financial security crosses my mind at some point every day. Instead of constantly worrying about this, I decided to do something about it. I opened an IRA a couple of years ago and I’m SLOWLY, but CONSCIOUSLY saving so I can be somewhat less concerned about finances as retirement age approaches. Retiring 30 years from now may seem like forever but sometimes I have to remind myself to spend (modestly) AND SAVE (actively) like I’ll live to be 100!
So, what is an IRA and why is it worth considering? An IRA is an Individual Retirement Account and anyone who earns taxable income can make contributions to one. There are restrictions regarding what age you have to be to make withdrawals but you may rest easier at night knowing you don’t have to worry about how you’ll make mortgage payments if you don’t own your home by the time you retire. IRAs are worth looking into, especially if your job doesn’t offer a retirement savings options. While Social Security benefits are helpful, sometimes that money is not sufficient for you to maintain your pre-retirement lifestyle. IRAs also have tax benefits! With the traditional IRA, you can earn tax deductions from the money you contribute each year. With the Roth IRA, you pay taxes up front and withdraw money tax free when you’re eligible to do so.
It’s never too early to begin saving!
Crystal J. Says:
IRA and 401(k) Investing by Dallas Salisbury and Marc Robinson
Amazon Amazon Says:
Developing an understanding of your retirement plan options can be simple and painless. and it shouldn't take hours of reading. In IRA and 401(k) Investing, you will find lega more...
Developing an understanding of your retirement plan options can be simple and painless. and it shouldn't take hours of reading. In IRA and 401(k) Investing, you will find legal, financial, and common sense information organized into clear, simple explanations that help you make sense of the crucial details. This book addresses all of the current rules and discusses the latest changes affecting them. smart tips help you avoid pitfalls and select the retirement plan that's right for you. Increased interest in do-it-yourself money management is a defining trend of our modern world, and the DK Essential Finance series provides the perfect personal finance library to help take advantage of this phenomenon. These outstanding guides provide a practical and impartial resource to guide you through important financial decisions. Useful questionnaires pinpoint one's financial status while easy-to-use charts and graphs help track cash flow, cut through the complexities of financial lingo, and gain the confidence needed to build real financial security. Readers can learn to invest online, live debt free, plan for retirement, or pay for a child's education. less...
Crystal J. Says:
The Complete Idiot’s Guide to Protecting Your 401(k) and IRA by Jennifer Lane
Amazon Amazon Says:
No need to panic. Written by financial experts, this essential guide tells investors how to keep their investments safe in this difficult economy. Readers will discov more...
No need to panic. Written by financial experts, this essential guide tells investors how to keep their investments safe in this difficult economy. Readers will discover how economic upswings and downturns affect investment plans?and what can be done to anticipate these trends; changes in investment rules and guidelines and their impact on 401(k)s and IRAs; and how to identify the proper investment decisions for their needs. ·On NPR?s March 7, 2008, broadcast of All Things Considered, discussion centered on new weaknesses in the economy, and quite a bit of time was devoted to a story on how to protect your 401(k) ·In 2000, 40 million 401(k) participants had an average account balance of about $50,000 and total assets of $2 trillion less...