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The Importance Of Having A Retirement Fund

If you are planning on retiring with peace of mind, then you must do it with a retirement fund. It is vital that you consider saving money now during your working years so that you have something to fall back on. Most people think they have all the time in the world to do this but they don’t. Starting with your first day into the working world, saving for those golden years should be fresh on your mind before starting a family, buying a car, or purchasing a home. If you are a business owner or someone who makes a living from the stock market, having a retirement fund is crucial. You do not have the luxury of an employer taking out money for you. That is something you must do on your own. It can come back to haunt you if you don’t do it.

There are plenty of advisors out there that can help you deal directly with your situation, but if you do not take advantage of it, when it’s time to retire, you will not be able to. Not only will a good advisor help you with a retirement plan, but they can also answer questions you have about asset protection. There are elderly people right now who wish they had thought about setting up a retirement and yet find themselves working as store greeters and part-time security guards just to make ends meet. Those retirement checks from the government are not enough to cover living expenses, so having something else to draw money from can be a big life saver.

The Most Valuable Asset

Having a retirement fund is going to be your most valuable asset. Once you get a retirement fund, and start putting money away, you will find that some of these funds accrue interest. That is extra money that will benefit you so you are not just saving on your own. If you play the stock market, you can get an account where you can invest some or all of your money and get a very nice return which can boost what you already have. This is the quickest way to add extra money to your retirement fund and enjoy it without the hassles of adding extra income through hard labor. You owe it to yourself to get the most valuable asset you could ever have up and running just for you. Besides, which is better, sitting on a beach at 65 in your vacation spot, or still working and can barely afford to feed yourself after paying bills? You be the judge on this one.

How Much Should Go Into The Retirement Fund

If you are wondering how much money you should invest each month, or how much money should actually be put in the retirement fund each month, consider putting your dividend checks towards that. Instead of spending your quarterly checks on things you really don’t need, put them in the retirement fund or invest that money to make more for the fund. This strategy will pay off for you, and it is another quick way to build up your retirement fund. Your investment portfolio is going to look really nice with a lot of your money being projected towards your retirement. Relying on a 401k is no longer the viable thing right now. Yes, it helps but you must do more on your part as 401ks don’t really have the great interest rates they once did. Plus, those could easily be wiped out in an emergency. More people tend to borrow from that because they don’t have a rainy day fund, or it is depleted, and the savings account is empty. You need to put some type of money aside and designate it for your retirement fund every month. You need that money to work for you.

What Types Of Retirement Funds Are Available

You need an account that is tax-free. Most of these are IRA accounts and are considered to be the best retirement funds available. They are Simple IRA, Roth IRA, Sep IRA, and of course a regular IRA. These accounts will help you grow your retirement fund with fewer hassles and paperwork. You can have several of these, if that helps, but now there are certain rules with each one you must follow. However, you should get your retirement account up and running now. You will be glad you did.

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About Becky Wilcox

Becky Wilcox is a freelance writer who has an ear for personal finance, debt, and equities. In her spare time she loves to pursue a healthy lifestyle along with trying new dishes in the kitchen.