IRA 401K?
Planning for the future is super important. Nobody wants to still be working when they are 70 years old, and no one wants to have to depend on their children to take care of them financially.
How do we avoid that? There are many different retirement planning methods to choose from. I'd like to discuss briefly an IRA and a 401K.
IRA 401K Almost all companies offer a 401k plan to their employees. In most cases, they will match your contributions 100% for a specified number of years or total amount.nThey have their reasons.
The law requires employers to maintain so many dollars for the benefits they grant employees. This is in hopes of avoiding more cases like Enron had. When they are encouraging the workers to contribute to the fund, they get more dollars to back their package up.
Another reason is that they can use the funds to invest and actually make money from your contributions, thus allowing them to pay you back at time of retirement with the earnings from your own contributed dollars.
IRA stands for Individual Retirement Account. The purpose of these accounts is to make people want to invest in their retirement to kind of take it easy on the social security system. Too many people rely on their 401K and then their company goes under. Then they are left eith no retirement.
Many differnt IRA's exist to suit different people's needs. Research them and talk to a financial advisor to find which one is right for you.
How do we avoid that? There are many different retirement planning methods to choose from. I'd like to discuss briefly an IRA and a 401K.
IRA 401K Almost all companies offer a 401k plan to their employees. In most cases, they will match your contributions 100% for a specified number of years or total amount.nThey have their reasons.
The law requires employers to maintain so many dollars for the benefits they grant employees. This is in hopes of avoiding more cases like Enron had. When they are encouraging the workers to contribute to the fund, they get more dollars to back their package up.
Another reason is that they can use the funds to invest and actually make money from your contributions, thus allowing them to pay you back at time of retirement with the earnings from your own contributed dollars.
IRA stands for Individual Retirement Account. The purpose of these accounts is to make people want to invest in their retirement to kind of take it easy on the social security system. Too many people rely on their 401K and then their company goes under. Then they are left eith no retirement.
Many differnt IRA's exist to suit different people's needs. Research them and talk to a financial advisor to find which one is right for you.
posted by Credit Counseling at
10:03 AM
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