In Uncategorized
According to a report by Market Sense, 4 out of every 5 Americans have less than a year’s income saved for retirement.  This report also finds that 57 percent of working-age Americans do not have any money in an employer-sponsored retirement plan.  
If you are seeking ways to save more for retirement, here are a few ways you can use IRAs to help you on your way! 
First, what is an individual retirement account? 
An individual retirement account allows individuals to place money into an account for retirement purposes.  There are two significant IRAs: traditional or Roth.  A traditional IRA will enable individuals to take a deduction on their taxes for the amounts contributed to the plan.  Whereas, Roth IRAs does not allow for the tax deduction, but allows your funds to grow tax-free generally.  For the year 2019, you can contribute up to $6,000 if you are under the age of 60.  However, if you are older than 50, you can contribute up to $7,000.  
Understand your options 
While I mentioned the two basic individual retirement accounts – traditional and Roth, small business owners can choose SEP IRAs.  These types can help you to contribute higher amounts depending on your business’ net profit.  For the year 2019, SEP contributions can be up to 25% of compensation or up to $56,000. 
 
Find the best place to set up your IRA
After you have determined which type of account you will utilize, next find the best way to set up your IRA.  Typically, you want to find a provider that offers low fees and also low minimums.  There is a great list online at NerdWallet that provides a list of best places to set up your IRA that can meet any budget.  
Select your investments 
Keep in mind, an IRA is just an investment vehicle that can be utilized to invest in different types of investment based on your risk tolerance, time frames, financial capacity, and goals.  As such, you can choose to invest in different asset classes:  such as stocks, bonds, cash/cash equivalents, or even real estate.  But really you need to sit down with someone and discuss your specific needs before moving forward. 
Kemcents Tips
Reminder, as you draw closer to retirement, consider reviewing your portfolio.  This is an excellent time to ensure you are not heavily invested in a risky profile that is volatile.  Speak your financial professional to help you make the best decision for your situation.  
Recent Posts

Leave a Comment

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text.