If you don't have access to a
401(k)
or
other
employer-
sponsored plan,
an
IRA
is an essential tool for retirement
investing. If you work part-time or freelance, you'll need to
make your own arrangements to save for retirement. IRAs are a
great option, since you can contribute any earned income, from
any kind of work you do.
Even if you have a full-time job, you might not
be eligible to join your employer's retirement plan until you've
worked at your job for a year, or until you turn 21. During the
waiting period, putting some money in an IRA means you'll get
a jump start on the advantages of
tax-deferred
or tax-free investment
growth.
IRAs are also an option for people who have maxed
out the amount they can contribute to their 401(k). By adding
more retirement money to an IRA, you're in a great position to
enjoy the benefits of long-term investing.
1.
Compare all three types of IRAs to determine which
you are eligible for. A traditional non-deductible
account may be your only choice.
2. If you have more
than one option to choose from, consider which best
fits your needs. You might want to work with an experienced
financial adviser who can help you figure out how
to get all the tax breaks you qualify for.
3. Make a list of
possible investments for your IRA portfolio, and how
much money you'd
allocate
to each. Discuss your plan with a financial adviser.
