Retirement, retirement, retirement–just the word alone is enough to send even the most responsible saver into a tizzy. While most people start saving in their 20s or 30s, a few carefree souls end up waiting a bit too long.
Not to fear, though–even if you’re 40 and up, there’s still time to set at least some aside. If you don’t have a job that does this for you already, then you may want to consider opening a retirement account on your own. It could end up making more of a difference than you think.
Ever heard of an IRA? Our bet is yes, but maybe you’re not sure what the heck it is. It stands for Individual Retirement Account, which is a retirement savings account that allows you to withdraw your money without having to pay taxes. There are two kinds of IRAs: traditional and Roth. Contributions to traditional IRAs are tax deductible and tax-deferred, meaning that the account will not be taxed until the first withdrawal is made. Roth IRAs, on the other hand, are never subject to taxes. They do, however, have certain income requirements that traditional IRAs do not.
This is just a general overview of the most popular kinds of IRAs, though. For more specifics on each kind, read on and see how you can still save up a small nest egg for retirement.
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