Concerned about outliving your savings? Opening a tax-advantaged IRA is a great way to increase your retirement funds. At a time when 4 out of 10 Americans believe they may outlive their savings, according to Northwestern Mutual’s 2018 study, opening an individual retirement account (IRA) can substantiallyincrease your retirement money. Less than a third of us have any type of IRA, a 2018 studyby CFSI found, even though these accounts offer big tax advantages that can improve financial security. You can open an IRA if you earn money and are younger than age 70 ½, even if you already participate in a 401(k) or other employer-backed saving plan. People aged 50 or older are allowed to make “catchup contributions” to improve their retirement savings faster. Credit:Northwestern Mutual Why IRAs are one the best ways to save for retirement
If you change jobs, you can roll your 401(k) into your IRA instead of cashing out your funds. This can save you an early withdrawal penalty if you are younger than 59 ½, as well as the tax liability. All of these great tax advantages make IRAs one of the best ways to save for retirement.
Credit: The Pew Charitable Trusts Who can benefit from using an IRA to improve retirement savings Many Americans use a combination of IRAs and other retirement savings vehicles, but IRAs may be the only tax-advantaged retirement savings plan available to some workers. According to a report by The Pew Charitable Trusts, 35 percent of private sector workers do not work for an employer that offers a pension or a defined contribution plan such as a 401(k), and 41 percent of Millennials don’t have access to an employer-sponsored retirement savings plan.
IRAs give everyone the chance to improve their retirement savings, even those who are self-employed or working for a business with no retirement offerings. That’s an important consideration, since 42 percent of Americans have less than $10,000 saved, according to Go Banking Rate’s 2018 Retirement Savings survey. Credit: Go Banking Rates Tips on how to maximize retirement savings with an IRA When used to their best advantage, IRAs can leave you in a much more secure position when you retire. Here are three tips that make getting the maximum benefit from your IRAs as simple and pain-free as possible:
For more tips on ways to increase your retirement money and other financial advice, reach out to skilled Greensboro financial planner Matt Logan at www.mattloganinc.com or call 336-540-9700. We can help you develop a retirement savings strategy that will allow you to live your desired lifestyle throughout your retirement. From https://localseo0.blogspot.com/2019/02/increase-your-retirement-funds-with.html from From https://juanitasmith0.blogspot.com/2019/02/increase-your-retirement-funds-with.html from https://juanitasmith0.wordpress.com/2019/02/21/increase-your-retirement-funds-with-these-simple-tips/ from https://angelawalker0.blogspot.com/2019/02/increase-your-retirement-funds-with.html
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