Many workers (60%) saving for retirement report total savings and investments of less than $25,000 (not including the value of their primary residence or any defined benefit plans). The majority of these workers who have put money aside for retirement have put aside very little: 30% say they have less than $1,000 in savings, according to the nonprofit Employee Benefit Research Institute (March 2012 Retirement Confidence Survey).
These are startling statistics which highlight the drastic need for retirement planning in America.
Whether or not you are covered by an employer-sponsored retirement plan, an Individual Retirement Arrangement (IRA) may be another avenue for you to save for retirement. IRA accounts come in two flavors. A Traditional IRAmay offer a current year tax deduction and tax-deferred growth. With aRoth IRA, your contributions are after-tax (not eligible for a deduction), but your money will grow tax-deferred and be tax-free upon withdrawal at retirement. Plus, there are exciting opportunities with Roth IRAs now that may benefit you. We can help you evaluate which option would work best for your individual situation.
Federal tax law establishes the total amount you can contribute to traditional and Roth IRA accounts each tax year.
At Compass Financial Advisors, we continuously strive to adapt, evolve and improve our operations so that we may deliver excellent communication for our clients while the providing them with the best investment solutions. We invest the capital that you have entrust with us in the same manner we invest our own capital.