IRA vs 401K
Planning for the future is super important. Nobody wants to still be working when they are 70 years old, and no one wants to have to depend on their children to take care of them financially.
We have many different retirement accounts and funds to plan for retirement, and I'd like to talk about 2 very popular ones, the IRA and the 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 law requires employers to maintain so many dollars for the benefits they grant employees. This is in hopes of avoiding more cases like Enron had. When they are encouraging the workers to contribute to the fund, they get more dollars to back their package up.
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.
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.
We have many different retirement accounts and funds to plan for retirement, and I'd like to talk about 2 very popular ones, the IRA and the 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 law requires employers to maintain so many dollars for the benefits they grant employees. This is in hopes of avoiding more cases like Enron had. When they are encouraging the workers to contribute to the fund, they get more dollars to back their package up.
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.
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 Debt Consolidation Loan at
3:42 AM
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