The IRA is the way to go if you have an employer who does not offer a 401K. The IRA is not difficult to understand. Saving for your future is incredibly important. The market fluctuates greatly but because of the long duration of time the IRA Marysville CA sits, it is likely it will be exponentially greater once it is time for you to take it out. This is in comparison to a traditional savings account which at the time of publishing, most likely yields only 2-4% interest. Because of this, you want to contribute to an IRA Marysville CA for your retirement.
The most important thing to note with an IRA is you have a limit of what you can contribute each year. Each calendar year, you can put a maximum of $5,500 in an IRA. This is for everyone 50 and younger. If you are 50 or older, you can contribute a max of $6,500 to the IRA. This is to give you an edge since you still have 20 years to contribute, but started later in life. The IRA cannot be tapped into until you are 59 ?. You are allowed to take money out of the IRA sooner, but this results in hefty penalties.
Money can stay in the IRA until you are 70 ?. Many people choose to do this unless they are in need of the money at an earlier date. If you take the money out after 59 ? you are not penalized. Some people who are about to retire at 60 take money out to see how they will manage their lifestyle for the remainder of their retirement. A financial advisor can also set up a budget for you and your family that allows you to see how you will live with the limited income of an IRA.
If you choose to take money out of the IRA, you can replace the money within 60 days to avoid a penalty. This can only be done once every 365 days, but it does offer some leeway for those who need a slight advance on funds for one reason or another. This is not a practice to be abused though. Any experienced financial advisor will tell you that more people who take money out of an IRA do not put the money back than those who do. For the best advice, contact an experienced financial advisor for help on choosing the best way to save for your future.
