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| IRA vs 401K |
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| Written by Crystal Castillo |
| Saturday, 10 January 2009 16:28 |
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It is vital that we plan for our future retirement. No one wants to work until they die or be forced to rely on their loved ones to support them financially. How do we avoid that? There are many different retirement planning methods to choose from. I'd like to discuss briefly an IRA and a 401K. IRA 401K Almost all companies offer a 401k plan to their employees. In most cases, they will match your contributions 100% for a specified number of years or total amount.nThey have their reasons. 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. Too, they will usually take the funds and invest in either in-house business or market funds. This generates earnings from the money you the worker has contributed. So when you retire they get to pay you back with mostly your money or the earnings from your own money. An IRA is an Individual Retirement Account. This is an account created by the government to encourage people to start investing for their own retirement rather than relying completely on the 401k plan their company offers or the Social Security system. By encouraging us to plan for our retirement, they ease the strain on the Social Security. There are many types of IRA and each person would do well to research them thoroughly to find out which is the best for their circumstances. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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