Investing For Retirement
There are numerous ways to start your retirement investing. You have the option of investing in mutual funds, stocks, IRA, 401(k), Roth IRA, money market, bonds or just using a savings account. Let us help break it down for you.
The first place to begin investing for retirement is a 401 (k). If you current employer offers you the choice to invest in a 401(k) with an employer match, it should be a no-brainer. If you employer offers a 3% match, you should be investing at least 3%. Because you are essentially getting a 100% gain right off the bat. It also allows you to defer income taxes on the saved money and earnings until withdrawal. So, the first step in investing for retirement is to invest enough in your 401(k) to receive all of your employers match.
Retirement Investing
After taking advantage of your 401(k) (or if your employer does not offer one) you then have the choice of investing in a Traditional IRA (Individual Retirement Account) or Roth IRA. The main difference between the two is that in a Traditional IRA contributions are usually tax-deductible, earnings are tax-free, and withdrawals at retirement are taxed as income. In a Roth IRA contributions are made with after-tax dollars, all transactions are tax-free, and withdrawals are usually tax-free.
Determining if an IRA or Roth IRA is a better choice for investing for retirement is dependent on your age, financial situation and objective. However, in most cases a Roth IRA will results in better results for most people.
If you are looking to start investing in retirement with
an IRA, s great place to start is with
TradeKing.
TradeKing offers a no fee IRA and no inactivity
fees! You can view our full online investing comparison.
Investing in retirement online is a great way for anyone to manage their investments. Whether you are going to be investing in stocks, mutual funds, bonds, money market or any other investing vehicle, doing it online is a great way to get started.