When you are thinking about the future, one thing that you should be thinking about is a plan for your retirement. It can feel like it is a long way off, but the earlier that you set up your plan, the better. There are different retirement accounts that people can have, an employer-sponsored savings plan, such as a 401(k) or an individual retirement account (IRA).
Some people may choose to have just a 401(k) or an IRA, but others may want to contribute to both. If you decide to have both, it could be because the 401(k) doesn’t allow you to accumulate the amount of savings that you would want or need for your retirement.
An IRA can have many advantages and is a great way to supplement your employer-sponsored retirement plan. It is also a good choice if you are self-employed or work in a job that doesn’t offer you a retirement plan. An IRA is an account that allows you to save money for your retirement with tax advantages. These tax advantages differ depending on the type of IRA that you choose.
When it comes to choosing the type of IRA to open, it is essential that you decide which one is right for you. The two different types of IRA are Roth and Traditional, and each one has their advantages. If you are interested in opening as IRA but are unsure which one to choose, the following infographic clearly illustrates the difference between the two and makes it easier to understand.
Infographic Design By Accuplan Benefits Services
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.