Friday, November 6, 2015

2 Retirement Plans for your Future

When it comes to your retirement, you are going to want to make sure that you have the best plan out there. However, a plan that may suit one person will not necessarily suit another. To each his (or her!) own, after all. There is a ton of different options out there when it comes to your retirement plan. However, there are two very basic categories for you to choose from. If you are shaking your head thinking that you are still too young to start planning for your retirement, think again. Racking up finances for your future could not start at a better time. The two most common categories of retirement plans are: 

Individual Retirement Account (IRA)

The IRA is a very broad field of retirement accounts. They are made by people who are interested in having a lot of control over their retirement fund. Since an IRA is a privately managed account it is usually an option at most banks and other financial institutions. What you need to remember is that the IRA is not just one specific account. There are a ton of personalization options out there for you to choose from when setting up your IRA. It works by depositing a certain percentage of your monthly earnings into the account. This can either have income tax deferred on it, or you could pay the normal rate of tax.

Retirement Plans

In addition to this there is another type of IRA account out there that isn’t exactly different, but is a variation on any normal IRA. This is called a gold or silver IRA, and it is definitely something worth looking into. So what is a silver IRA all about? Well, it involves converting all or part of the funds in the retirement account into precious metals. Real gold or silver is bought using the money in the account. This allows for a far higher level of security on the money in the account because of the fact that gold and silver don’t lose their value over time nearly as easily as normal currency does. However, you need to find the right IRA plan for this to be available. 

401(k)

The 401(k) works on the same basic principle as a normal IRA, with one major difference. It is managed by your employer. This is perfect for long-term employees who plan on staying at the same place of work until retirement. It does not offer as high a level of control over what is in it as an IRA does. This makes it lovely for people who don’t really want all that extra pressure of handling their IRA in the right way. In addition to this it doesn’t have a precious metals option. However, it does have the advantage of being much easier to use than the privately owned counterpart. It is also safer than the IRA, because it is managed by an employer and you can be sure that your earnings are put in on time. However, you need to understand that only your wages from that company can be put in!

Of course, it doesn’t just stop here. There are plenty of alternative options to save for retirement but the aforementioned two plans are tried and proven so they are safe options to start with.

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