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Retirement can be a daunting subject, but with the right preparation, the financial costs can be manageable. ACCC explains some different retirement plan options:
- 401(k) – This account is offered by employers as an employee benefit. Many employers offer to match employees’ contributions too.
- Individual Retirement Accounts (IRA) – This tax-advantaged tool can include investments in bonds, mutual funds, and stocks. IRAs are a good option if your employer doesn’t offer a 401(k).
- Roth IRA – This allows consumers to contribute after-tax income to an IRA. The money earned in this savings account will not be taxed upon distribution.
- Spousal IRA – This allows a consumer’s nonworking spouse to accumulate tax-advantaged savings for retirement.