In: Accounting
What do you think might be the most important factor with retirement planning? Can you share your planning right now if you have any? For example do you have an employer 401K or do you contribute to an IRA? If not have not start your retirement planning, what have you learn from this week's reading and module?
IMPORTANT FACTORS WITH RETIREMENT PLANNING
"Even after cnsidering all of the above factors , as per the personnel opinion, the most important factor / the vital part with retirement planning is to take control of your financial performances as soon as possible through a well defined professional , independent financial advice.. Financial planning is crucial, because it helps to know your expenses and incomes, which helps you for the retirement budget preparation".
RETIREMENT PLANNING RIGHT NOW IN INDIVIDUAL RETIREMENT ACCOUNT ( IRA )
My current retirement planning is to invest in IRAs.
IRA/Individual retirement account is an tax-advataged tool for individuals retirement savings. One of the main reason for it's selection for retirement investment is , accounts are of different for different employment status. It says that the tax liability will also be different for individuals having different employment status. IRAs which allows investors to select different kinds of investment like ; realestate, tax liens etc. are called self-directed IRAs.
You will get an IRA from any banks,credit union etc.. It is very similiar to opening a bank account either in personnel or over the internet. Opening of such account is much easier and painless.
How does it works ( ROTH IRA ): Under this type of IRAs, we will not get a tax deduction, since it's a after-tax account . Until our retirement, our investments will grow free of tax and any of the qualified withdrawals are 100% tax free. During the current year, because of the pandamic situation ( corona virus ) IRA conversion is more attractive . The CARES act privides ROTH IRA owner to take $ 1,00,000 from their IRAs regardless of their age in 2020. We can make our IRAs contribution even after filing the current years income tax return, provided that we have to meet the dead line of april 15th .