What Are My Investment Choices For Retirement Planning?
Investing for retirement may not seem important yet for someone who is still in their early age. But once that age of retirement is reached, then you will feel the need to do so. It might be too late then as you will not get the most out of your investments anymore. For those who want to start investing for their future, one of the most popular choice is the Individual Retirement Accounts. There are two options to choose: Traditional IRA and Roth IRA. These two investment tools defer the taxes on your contributions until retirement. There is a wide range of investment options available for both including stocks, mutual funds, and bonds. Traditional IRA Traditional IRA contributions are tax-deductible, with some restrictions. Your withdrawal upon retirement will be taxed just like an ordinary income. But if you choose to withdraw the money before age 59 ½, you will have to pay tax upon withdrawal plus a 10% penalty. Traditional IRA is good for you if you think that your tax rate at reti
Investing for retirement may not seem important yet for someone who is still in their early age. But once that age of retirement is reached, then you will feel the need to do so. It might be too late then as you will not get the most out of your investments anymore. For those who want to start investing for their future, one of the most popular choice is the Individual Retirement Accounts. There are two options to choose: Traditional IRA and Roth IRA. These two investment tools defer the taxes on your contributions until retirement. There is a wide range of investment options available for both including stocks, mutual funds, and bonds. Traditional IRA Traditional IRA contributions are tax-deductible, with some restrictions. Your withdrawal upon retirement will be taxed just like an ordinary income. But if you choose to withdraw the money before age 59 ½, you will have to pay tax upon withdrawal plus a 10% penalty. Traditional IRA is good for you if you think that your tax rate at reti
