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.
There are lots of different retirement plans that people use to avoid that. The two we will descuss now are IRA and 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 also called an Individual Retirement Account. They help ease the strain on Social Security by allowing benefints and incentive to the account holder for investing in their own retirement instead of relying solely on their 401K offered by their employer. Because if the employer goes down the 401K is litterally worthless.
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.
There are lots of different retirement plans that people use to avoid that. The two we will descuss now are IRA and 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 also called an Individual Retirement Account. They help ease the strain on Social Security by allowing benefints and incentive to the account holder for investing in their own retirement instead of relying solely on their 401K offered by their employer. Because if the employer goes down the 401K is litterally worthless.
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
1:13 PM
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