Retirement is for the Young

Many Americans that live in the U.S. take well advantage of 401K Retirement plans and IRAs.  So this post is not for those people.  I want to reach the people that currently are not working on saving for retirement and/or that are offered 401K benefits on their job, but are not taking advantage of it. This often comes from a level of discomfort, so I want to ease your mind.

Reasons you need to save for retirement

Close your eyes and imagine an old man or lady with a cane, wrinkled skin, and fragile bones. Now,
imagine that's you. The truth is that it is you if you are blessed to live to see it whether it's 30,40, or 50 years from now. You are that old lady or old man.  Who should be responsible for taking care of him/her? I would
say you. If you plan now, you can make sure that elderly person is financially stable in the years to come.
Start planning now, so that if you can provide yourself with assisted living of Your choice, or you can reside in your own home with around the clock care, or maybe you can stay on your own but you would like to travel and see the world when you retire.  Either way, there will come a day when you possibly do not want to work a full-time job anymore.  Maybe your teeth have fallen out, and your back hurts easily, and your legs are shaky when you walk, so it would be nice to just relax and enjoy the remainder of your life and live off the fruit of your labor.

401K plans for Retirement

It's not a myth!  401K plans offered by employees are real and absolutely awesome.  The way it works is you invest your money and based on the company plan, they generally offer anywhere from a 50%-100% match up to a certain percentage.  In addition, that money is invested in stocks, bonds, mutual funds, and gain interest.  Different companies have certain rules, but after a certain time period you become 100% vested, which means the contributions made by your employer is now yours.

Individual Retirement Accounts-IRA

Also, if you do not have a 401K plan on your job.  An IRA is another way you can invest in your retirement.  It's an individual retirement account that gains interest similar to a 401K.  However, you don't get a company match, but you do save for that elderly person we discussed in the first paragraph.

Talk to your Financial Advisor on how to start an IRA and discuss the tax benefits with your CPA.