401K IRA
It is vital that we plan for our future retirement. No one wants to work until they die or be forced to rely on their loved ones to support them financially.
We have many different retirement accounts and funds to plan for retirement, and I'd like to talk about 2 very popular ones, the IRA and the 401K.
IRA 401K A 401k is a retirement fund usually managed by a person's employer. The employer will usually offer to match dollar for dollar the contributions of an employee up to a certain amount or up to a certain number of years. There are several reasons for this.
The employer has to have so many dollars on hand for everything in each employee's benefit package. So by offering to match your contributions, they are encouraging you to invest in the 401k fund, and they thus get more on hand dollars to invest and to claim.
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.
An IRA is an Individual Retirement Account. This is an account created by the government to encourage people to start investing for their own retirement rather than relying completely on the 401k plan their company offers or the Social Security system. By encouraging us to plan for our retirement, they ease the strain on the Social Security.
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.
We have many different retirement accounts and funds to plan for retirement, and I'd like to talk about 2 very popular ones, the IRA and the 401K.
IRA 401K A 401k is a retirement fund usually managed by a person's employer. The employer will usually offer to match dollar for dollar the contributions of an employee up to a certain amount or up to a certain number of years. There are several reasons for this.
The employer has to have so many dollars on hand for everything in each employee's benefit package. So by offering to match your contributions, they are encouraging you to invest in the 401k fund, and they thus get more on hand dollars to invest and to claim.
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.
An IRA is an Individual Retirement Account. This is an account created by the government to encourage people to start investing for their own retirement rather than relying completely on the 401k plan their company offers or the Social Security system. By encouraging us to plan for our retirement, they ease the strain on the Social Security.
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
12:59 PM
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