Debt Consolidation Credit Counseling In Phoenix

It is vital that we plan for our future retirement. No one wants to work until they die or be forced to rely on their loved ones to support them financially.

How do we avoid that? There are many different retirement planning methods to choose from. I'd like to discuss briefly an IRA and a 401K.

IRA 401K A 401k is a retirement fund usually managed by a person's employer. The employer will usually offer to match dollar for dollar the contributions of an employee up to a certain amount or up to a certain number of years. There are several reasons for this.

The law requires employers to maintain so many dollars for the benefits they grant employees. This is in hopes of avoiding more cases like Enron had. When they are encouraging the workers to contribute to the fund, they get more dollars to back their package up.

Also, they get to earn more money from the money you contribute to the fund whether by investing in the market or using in their own business. So when it comes time to pay it back to you, they will be paying you back with mostly your money and the earnings from the money you contributed.

An IRA is an Individual Retirement Account. This is an account created by the government to encourage people to start investing for their own retirement rather than relying completely on the 401k plan their company offers or the Social Security system. By encouraging us to plan for our retirement, they ease the strain on the Social Security.

Since their are so many types of IRA's, it may be difficult to decide which is the best for your plan. Discuss your retirement goals with a financial advisor and they can help you see which is the right one.