IRA and Planning For Your Retirement: Enjoying Your Golden Years

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People are living longer these days, which is wonderful news. But if you don’t properly plan for your retirement, what should be a time of enjoyment, can become a time of stress and anxiety. Having an IRA and a retirement plan can help you live your best life after you retire.

Time Flies When Planning for Your Retirement

When you are in your 20’s and 30’s, retirement seems a lifetime away. It is also hard to set money aside for retirement when you are trying to pay off student loans, getting married, buying a house and starting a family.

Before you know it, you are in your 40’s and 65 seems a lot closer than it used to. However, you also have two kids who are looking at great (and expensive) colleges, your daughter is getting married, and your parents need help around the house, which their insurance doesn’t cover. Who has money to set aside for your retirement when you are trying to help your children and your parents?

Now you are in your late 50’s, retirement is just around the corner, and you aren’t sure if you will be able to have enough money for a financially secure retirement.

An IRA Can Help Build Your Nest Egg

It is difficult for most people to set aside money for retirement. Even if you worked your whole adult life, putting away money for your retirement isn’t easy, especially for lower and middle income families.

And financial security in your golden years means more than just having a savings account. There are several tax breaks that you can take advantage of that will help you save even more money. There are also ways that you can protect that nest egg so that you don’t lose the funds that will help you enjoy retirement.

With an Individual Retirement Account (IRA), you can take advantage of certain tax deferments or even tax-free growth. It is different from a standard savings account because this one is specifically designed to help you with your retirement planning.

Different IRA Accounts Have Different Benefits

Certain banks and brokers offer IRAs and there are many different types, each with their own advantages and disadvantages. 

Types of IRAs include:

  • IRAs (or a traditional IRA)
  • Roth IRAs
  • Simple IRA
  • Self-Directed IRA
  • SEP IRA
  • Spousal IRA
  • Nondeductible IRA
  • Rollover IRA
  • Education IRA
  • Inherited IRA
  • Group IRA

What Are the Most Common IRAs?

The two most common types of IRAs are known as a traditional IRA and a Roth IRA. With a traditional IRA you receive tax breaks for the contributions you make to your IRA account. A Roth IRA doesn’t allow you to receive annual tax breaks for contributions, however, you don’t incur taxes when you withdraw funds from your Roth account, and the money you invest grows tax free.

IRA and Retirement Planning

Understanding the benefits of an IRA is only one aspect of financially secure retirement. There is more to financial planning than a secure nest egg. You need to understand investment types, investment rules, investment limits, and  keep up to date on the latest tax laws. 

A retirement planning attorney can help you with all of the aspects of setting up an IRA and creating a comprehensive retirement plan. If you are looking for help understanding the ins and outs of IRAs and retirement planning, feel free to access our free resources here.

Looking for a retirement planning attorney? The Law Offices of Barton Levine can help. Fill out our Contact Us form today to schedule a free consultation. 

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