Many people who make less than $50,000 a year believe that they will never be able to save enough to enjoy a comfortable retirement. The good news is there are some very effective and successful strategies. Just by implementing some or all of these you, too, can ensure that you steadily save toward your retirement. Saving money requires discipline and often involves sticking to a budget. These things may seem difficult, but in the long run will make your later years more enjoyable. If you have money to retire when the time comes, you won’t need to spend the rest of your life working.
1) Open a ROTH Account
A ROTH IRA is a very simple and easy-to-manage type of retirement account. Contributions, while not deductible, do grow tax-free. That allows you to build up savings and then watch those contributions grow in value, through methods such as accumulated interest. Then you can withdraw the funds in retirement without having to pay the IRS taxes on the increase in value that you earned. You have until your tax return deadline to set up and make contributions for the previous tax year. You can also withdraw contributions (but not earnings) at any time, without penalty, and you don’t have to pay them back like with a 401(k) plan. Roth IRA rules allow a wide range of investments including stocks, bonds, mutual funds, CDs, and even real estate.
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