Most people in the working world look at retirement as a savings account for when the job is over. The future is built around what you save while you are working. There are many who withdraw their funds for various reasons. Some people change jobs where they withdraw and transfer their retirement funds, transferring them to another account holder, or to an investment broker. Once you are hired with a company, you go to human resources and set up your benefits. These benefits normally contain healthcare, dental and vision, and as well as retirement. More than once, I have struggled with the questions of “How did I work so long, yet I feel as if I was worth more than this?”
If you are saving for retirement and do not know what other options are out there? Something you can consider is an account that holds investments in it. IRAs (Investment Retirement Acts) are not investments themselves, they are only the account that holds the investments. Within the account you can invest in stocks, mutual funds, CD’s, money market funds, and you can even own real estate in your IRA. An IRA is basically an account that provides huge tax benefits when used to save money for retirement.
The two most common and basic IRA’s, are the ROTH and the Traditional. The main advantage of the Roth IRA is that you use after-tax money to fund it, so when you reach retirement age you will not pay any taxes on the withdrawals. The Traditional IRA, on the other hand, offers an up-front tax deduction, but commands taxes to be paid in retirement.
However, taxes invested in the future from the company, are something for the future. As I was viewing an episode on KNOE news last night, I was surprised to see how much people are saving in heating bills this year due to the early spring. Some people stated savings up to $700.00 in savings. There were increased numbers in “do it yourself projects.” Home Depot has increased sales, as well as Lowe’s, and other stores that sell products as that. There is an increased number of building, an increased number of construction, an increased number of jobs and employees, and a decrease in job unemployment.
With spring in the air, the future is getting brighter for all of those who are starting new jobs. With these new jobs are people beginning to save. Whether it is through retirement through their company, or through their independent investment agency, 2012 has brought forth many positive changes for the year thus far. It seems the savings offered forth through savings, have opened the door to spring into living for today and tomorrow!
Published March 15, 2012, Ruston Daily Leader, The Park Bench.