Retirement, are you thinking about it? Unfortunately, not many people are concerned about retirement until it is close to happening. Then there is a reality check of sorts because the gap between the funds you have currently does not even come close to what you need to retire comfortably ðŸ˜
But, I wonder, what makes people put off saving for their eventual retirement? No one wants to work forever. So after working with numerous clients to get their finances back in order, I noticed a common thread is lack of information.
Lack of information about the importance of planning for retirement for younger folks as well as middle-aged and older individuals. Cue the 💡!
Thinking out loud here, but…
What if there was a way that you could easily understand more about retirement and figure out which plan was the best for your particular situation in an easy to digest format?
Well, my friends, look no further than this quick read to explain what all the commotion is concerning IRA’s.
Here, in the coming weeks, I will breakdown what an IRA is and the different types of retirement accounts to choose from, as well as the pros and cons of each. I will call it an IRA Series Workshop, and this will be the first post about it.
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To kick off the series, what exactly is an IRA?
An IRA stands for Individual Retirement Account, and as you can guess, it is designed up to help anyone save for retirement.
I know what you’re thinking, “Why do I need to worry about retiring?” Consider this, right now, you may or may not be worried about money.
Still, I can guarantee you that there will come a time when you will want to quit your job, shop without having to check price tags, travel anywhere, or just spend more time with family and friends and not be worried about your finances.Â
In short, you want to be able to live out your years without the fear of running out of money, especially if you’re not working.
All of this boils down to freedom, financial freedom, and the only sure-fire way to get financial freedom is to plan for it.
So, with that being said, there are a few different choices you have when it comes to an IRA. Let’s break them down.
There are five different types of pension plans a person can choose from, they are:
Yes, five types of pension plans, but no need to worry! They don’t call me the Savvy CPA for nothing.
I’ve got the deets on what is what. So stay tuned for my next blog post, where I will break down the elusive Traditional IRA.
Until next time friends!
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Cheers!
JD Longino, CPA
