Retirement planning is for everyone, young and old alike.
The young usually overlook it. They feel it is too far away to beging worring about it. Returment planning is for everyone. All working people young and mature must accept this fact and start the planning process immediately
Even though retirment may be a long way off, calculate the amount of money you will need to support you and your spouse. Will your company pension plan and Social Security benefits be enough?
Very likely not. If you are like most Americans, pension checks coupled with Social Security will not fulfill your dream of a worry-free life style. You will need more resources and they may have to come from your assets-your savings, other investments
Two Obstacles to Secure Retirement
Taxes and Inflation
To protect yourself from them. Taxes erode your earned and investment dollars. To combat this, you have the option of Individual Retirement Account IRA. Simplifed, an IRA is an retirement savings program that allows wage earners to contribute to the plan allowing that money to accumulate interest and thus grow on a tax deferred basis.
Three Tax Benefits of An IRA
- Reduction of taxes through the deduction of all or part of your contribution from your taxable income.
- Long term tax advantage: The IRA permits contributors to avoid annual taxation, allowing your funds to grow tax-free. You don’t pay the tax until you retire, at which time your tax rate may be possibly reduced.
- “Millionaire” status: Tax-free compounding generates astonishing numbers and you may be able to accumulate a seven-figure fortune.
Inflation is the real monster of the two. It can potentially equalize if not erase any interest earned on your savings if the right investment strategy is not used. Hundreds of banks, security brokerages, and insurance companies all compete for a share of the IRA pot, each boasting that its own specific IRA is the best investment choice.
If you are not willing to ride the investment roller-coaster and still have a good chance of beating inflation, amoung the availble options is real estate, the soundest by far. You will find that investment in your home or condo has out performed all other investments not by 10% or 25% but as much as 100%!
Real estate investments confer unique tax advantages. You can defer taxation of profits when you sell your home after you reach age 55.
So what happens when you use your IRA dollars to buy real estate?
Best of Both Worlds
Buying real estate with your IRA can help simultaneously defeat taxation and inflation. Speak with your I am not a CPA or attorney. You must consult your CPA or Tax Attorney for the best investment strategy for you. The information given here is make you aware of options that are available and it is not intended to be complete or a guide to invest.