Individual Retirement Accounts: Why Bother?

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realize that the idea of living solely on the benefits of
social security is not realistic. In order to secure a comfortable future,
people must have some type of additional income. Sacrificing a small amount of
money into an IRA at a relatively early age could make a considerable difference
in the lives of people upon retirement. When planning for retirement,
Individual Retirement Accounts offer several benefits; however, careful
planning is essential to ensure that: upon retirement there is an adequate
amount of money saved, that the heirs to the IRA are chosen carefully, and that
unnecessary taxes and penalties are avoided.
It is important to consider how much money will be needed for a comfortable
retirement. Careful planning is essential when considering an item with such
importance. Phaneuf states that, according to figures used by most financial
planners, upon retirement the average person will need roughly seventy percent
of their current income to continue ...

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regular savings plans.
Another advantage to consider when planning an IRA is to start the account
as early in life as possible. It is obviously an advantage to use the program
that is going to give the best overall return; however, the advantage of
starting early should not be taken lightly either. As with all savings plans, a
key factor in the final results is the overall length of time that has been
exhausted investing into the account. People often think that there is an age
requirement to start an IRA; however, this is not the case. There are several
Banks that will even allow teenagers under the age of eighteen to begin an IRA,
as long as their parents cosign. The ...

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