In an increasingly financially strange world, thinking towards the future seems nebulous. But, your retirement is coming, and you need to be prepared. It can seem overwhelming to worry about things which are years away, when there are many worries, now. However, being able to make some savings is critical for this future time. How can you best prepare ahead, on a careful budget and without a 401K?
IRA
There was once a time when having a 401K through your company’s salaried plan was almost guaranteed. Those days seem to be over. Adding your own savings into an IRA account can benefit your future and have less restrictions than a 401K as well. An Individual Retirement Account can help you to have access to saving for retirement, but yet also get tax breaks when you do. IRA’s are useful in other ways as well. According to Franchise Gator, you can use an IRA to finance a business if you end up choosing a different route in your career.
HSA
HSA accounts have savings which carry over from year to year, and which have tax exemptions much like an IRA. They can be used for yearly medical bills, but also can be maxed out from year to year, with the funds carried over. According to Optum Bank, they can also be used to get tax breaks while saving for retirement. You have until April 15th, the tax deadline, yearly to add to your maximum amount of your HSA.
Brokerage Account
A brokerage account places money with a trader or financial advisor, who then purchases and trades stocks on behalf of the investor. An individual may make an investment with one of the larger firms, but there are smaller firms and also market-making firms. Which would work best for you depends upon how much you have to invest financially and how long you have until your goal retirement age.
Whether your retirement is decades and decades away, or close around the corner, being prepared ahead will benefit your peace of mind. You want to be able to enjoy your retirement, and have both the finances you need for your goals, like travel, but also the medical care you need to be able to be strong and healthy. By preparing now, you can set aside a set amount, and have your money in accounts, ready and working to make your future much brighter.
Need help saving for your retirement? Meet with Mike to learn more about how you can best save your money!
