If You're Working, You Should Be Saving!
It doesn't matter if you're babysitting once a week during college, working at Best Buy, landscaping, or working full time on Wall Street...you can and should be putting a little bit away each paycheck or each month for retirement. I know it seems too far off to even think about, but it will happen to you as it happens to everyone else.
Do you want to be living in a run-down house or apartment, or in 1 room in your own kids' house or do you want the freedom that money can give you to live where you want, travel, enjoy going out to dinner, etc.
Look at your own parents and grandparents and their friends...compare the way they live to what you will want.
You can put up to $5000/year into a ROTH IRA (as long as you don't make too much money!). The contributions you make are after the government have taken taxes out, but that money will be tax-free to you for the rest of your life...and not just the money you put in, but the interest that it makes is also tax-free.
That's about $425/month or $100/week. If you can't afford $100/week, put $25/week in.
If you can get $1000 in your ROTH IRA this year that will turn into $11,467 (5% annual interest), $117,391 (10% annual interest) or $1,083,657 (15% interest) in 50 years. ONE $1000 INVESTMENT!
If you do not qualify for a ROTH IRA because you make too much money, then you can have a Traditional IRA which allows you to put $5000/year in before taxes are taken out on that money. The government will tax that money when you take it out, but that's when you're 59 1/2. Again, the interest that accumulates until then does so on a tax-free basis, the only tax is upon withdrawal.
If you work for a company that offers a 401K Retirement Plan (ask your HR department or boss if you're not sure) then you should absolutely start putting money in because they probably match your contributions every year...that means they put money in when you put money in. And you can put up to $15,500 in each year unlike the IRA we discussed above.
Finally, if you're in your 20's and working for yourself or your family, there are other types of plans that will be better for you so find an accountant immediately and ask them how to get started. When you're 70 and living comfrtably in Tahiti, you'll thank us!
Do you want to be living in a run-down house or apartment, or in 1 room in your own kids' house or do you want the freedom that money can give you to live where you want, travel, enjoy going out to dinner, etc.
Look at your own parents and grandparents and their friends...compare the way they live to what you will want.
You can put up to $5000/year into a ROTH IRA (as long as you don't make too much money!). The contributions you make are after the government have taken taxes out, but that money will be tax-free to you for the rest of your life...and not just the money you put in, but the interest that it makes is also tax-free.
That's about $425/month or $100/week. If you can't afford $100/week, put $25/week in.
If you can get $1000 in your ROTH IRA this year that will turn into $11,467 (5% annual interest), $117,391 (10% annual interest) or $1,083,657 (15% interest) in 50 years. ONE $1000 INVESTMENT!
If you do not qualify for a ROTH IRA because you make too much money, then you can have a Traditional IRA which allows you to put $5000/year in before taxes are taken out on that money. The government will tax that money when you take it out, but that's when you're 59 1/2. Again, the interest that accumulates until then does so on a tax-free basis, the only tax is upon withdrawal.
If you work for a company that offers a 401K Retirement Plan (ask your HR department or boss if you're not sure) then you should absolutely start putting money in because they probably match your contributions every year...that means they put money in when you put money in. And you can put up to $15,500 in each year unlike the IRA we discussed above.
Finally, if you're in your 20's and working for yourself or your family, there are other types of plans that will be better for you so find an accountant immediately and ask them how to get started. When you're 70 and living comfrtably in Tahiti, you'll thank us!
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