Investing in your retirement is very important. On average, people start investing in retirement in their 20s. The sooner you start saving, the more time your money can grow. This is essential if you want to live comfortably when you’re retired. There are a few investment options for your retirement to provide for your monthly expenses. Before you start investing, we recommend you to discover different options. For this reason, we listed a few investment options that may suit your needs!
Your employer might offer you a retirement plan such as 401(k) or 403(b) plan. These are qualified retirement plans that allow you to save and invest in your retirement on a tax differed basis. The difference between a 401(k) and a 403(b) plan is that the last retirement plan is for those working at tax-exempt or not-for-profit organizations (such as schools). If you contribute to this plan, you can lower your tax burden and you do not have to pay taxes on your money in your account, until you withdraw it. A disadvantage of this retirement plan is that you are forced to withdraw all your money at a certain age. After that, you are not able to contribute to the plan anymore.
An IRA account (Individual Retirement Account) is a tax-advantaged account that helps you save money for your retirement. With an IRA account, you have access to many more types of investments than a 401(k) or 403(b) plan. You can choose for a traditional IRA account: if you put money in this account, it is tax-free and each year you get a tax refund. When you take your money out (after the age of 59,5) it will be taxed. You can also choose for a Roth IRA: the contributions come from a taxable income and you will pay tax at the front end. If you take the money out, it will then be tax-free. If your tax rate is now low, it is better to choose for this type of IRA.
With an IRA account, it is impossible to lose all of your investments. But every investment comes with risk as some of it might lose value over time. One type of investment that is considered stable is gold. We favor gold IRA since it holds its value. Even if severe market fluctuations and inflation have happened. If you want to choose the right investment we recommend you to do more research online because every investment is a personal decision.