Retirement Planning

1341 WordsOct 15, 19996 Pages
Retirement By: tena E-mail: tena2001@aol.com Retirement Retirement seems to be one of the most often overlooked areas of people's future plan. Simply because it seems so far away, it is an area that is subject to procrastination. People are expected to live longer now than ever before, this is another reason why young adults and teenagers are not worried about saving for their retirement. The baby boom generation, the seventy seven million people born between 1943 and 1960, face an entirely different retirement plan. As they began to retire, people are starting to think that there will be no money left and this will turn into a crisis. What will happen when seventy-seven million baby boomers begin to want the money they paid in……show more content…
The Roth Ira is mainly for people who do not want to deal with all of the complex rules or worry about paying taxes on future withdrawals. What are 401k's? A 401k's is an employee's best friend. It is a plan that allows employees to contribute a certain percent of their salary up to a specified maximum. These contributions are tax-deductible and your earnings are tax-deferred until withdrawn. Your employer can also provide "matching" contributions up to a certain percent as an additional benefit. According to the Washington, D.C.-based Employee Benefit Research Institute, about forty percent of all workers are offered a 401k-type plan, and of those, seventy five percent participate in it. The employees that are not taking advantage of the 401k plan just have not been educated about it, says Tom Foster, ERISA attorney for John Hancock Life in Boston. Another thing that is good for retirement is Mutual funds. A mutual fund is an investment vehicle that invests in the financial markets, such as stocks, bonds, and so on. Mutual funds give investors a chance to "play" with their money under the supervision of an experienced fund manager. There is a wide variety of funds available. There are Equity Funds for the most aggressive investors who will endure higher risk. Then there are Balanced Funds for the middle-of –the-road investors who want to combine equity investments with income investments such as bonds. Then lastly there are Income Funds for the
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