IRA 401K?
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 Most all employers offer a 401K fund as part of their package of benefits. They will also often offer incentives for you to contribute to that fund. One popular way of doing that is to match every dollar you contribute for so many years or to a certain total per year. They do this for a couple reasons.
They are required by law, to keep x amount of liquid dollars to back up the benefits they are offering to their employees. By encouraging you to contribute to the 401K they get more money on hand to claim.
Too, they will usually take the funds and invest in either in-house business or market funds. This generates earnings from the money you the worker has contributed. So when you retire they get to pay you back with mostly your money or the earnings from your own money.
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.
There are many types of IRA and each person would do well to research them thoroughly to find out which is the best for their circumstances.
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 Most all employers offer a 401K fund as part of their package of benefits. They will also often offer incentives for you to contribute to that fund. One popular way of doing that is to match every dollar you contribute for so many years or to a certain total per year. They do this for a couple reasons.
They are required by law, to keep x amount of liquid dollars to back up the benefits they are offering to their employees. By encouraging you to contribute to the 401K they get more money on hand to claim.
Too, they will usually take the funds and invest in either in-house business or market funds. This generates earnings from the money you the worker has contributed. So when you retire they get to pay you back with mostly your money or the earnings from your own money.
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.
There are many types of IRA and each person would do well to research them thoroughly to find out which is the best for their circumstances.
posted by Credit Counseling at
10:15 AM
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