IRA 401K?
Planning for the future is super important. Nobody wants to still be working when they are 70 years old, and no one wants to have to depend on their children to take care of them financially.
We have many different retirement accounts and funds to plan for retirement, and I'd like to talk about 2 very popular ones, the IRA and the 401K.
IRA 401K A 401k is a retirement fund usually managed by a person's employer. The employer will usually offer to match dollar for dollar the contributions of an employee up to a certain amount or up to a certain number of years. There are several reasons for this.
They are required by law, to keep x amount of liquid dollars to back up the benefits they are offering to their employees. By encouraging you to contribute to the 401K they get more money on hand to claim.
Also, they get to earn more money from the money you contribute to the fund whether by investing in the market or using in their own business. So when it comes time to pay it back to you, they will be paying you back with mostly your money and the earnings from the money you contributed.
An IRA is also called an Individual Retirement Account. They help ease the strain on Social Security by allowing benefints and incentive to the account holder for investing in their own retirement instead of relying solely on their 401K offered by their employer. Because if the employer goes down the 401K is litterally worthless.
Many differnt IRA's exist to suit different people's needs. Research them and talk to a financial advisor to find which one is right for you.
We have many different retirement accounts and funds to plan for retirement, and I'd like to talk about 2 very popular ones, the IRA and the 401K.
IRA 401K A 401k is a retirement fund usually managed by a person's employer. The employer will usually offer to match dollar for dollar the contributions of an employee up to a certain amount or up to a certain number of years. There are several reasons for this.
They are required by law, to keep x amount of liquid dollars to back up the benefits they are offering to their employees. By encouraging you to contribute to the 401K they get more money on hand to claim.
Also, they get to earn more money from the money you contribute to the fund whether by investing in the market or using in their own business. So when it comes time to pay it back to you, they will be paying you back with mostly your money and the earnings from the money you contributed.
An IRA is also called an Individual Retirement Account. They help ease the strain on Social Security by allowing benefints and incentive to the account holder for investing in their own retirement instead of relying solely on their 401K offered by their employer. Because if the employer goes down the 401K is litterally worthless.
Many differnt IRA's exist to suit different people's needs. Research them and talk to a financial advisor to find which one is right for you.
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5:39 AM
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