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It's Never Too Late to Save Money
By Sandra Reynolds, CFP
How can I make sure that I put money away for retirement?
If you have trouble saving money on a regular basis, you may try savings strategies that force you to save. Examples of forced savings strategies are automatic withdrawals from your savings or checking account into in a mutual fund, IRA or Roth IRA, and direct payroll deductions into a company sponsored retirement plan. These financial vehicles allow you to take your money directly out of your savings or checking account and/or your paycheck as an expense. This means you’ll be paying yourself even before you pay any other expenses. Some of these options, such as an IRA, Roth IRA and employer-sponsored retirement plans, also have deferred tax advantages that further increase the advantage of saving early.
Should I invest in a Roth IRA or a traditional deductible IRA?
Traditional IRAs have long been popular with investors. For many people, they offer a substantial current income tax deduction. However, when you withdraw the money, you have to pay income taxes on the amount you withdraw because you never paid income taxes on that money in the first place.
A Roth IRA doesn’t give you any income tax deduction but offers tax deferred accumulation like a traditional IRA. Under current tax law however, the distributions (withdrawals) are income tax free (if certain conditions are met). The assets in all IRAs, both Roth and traditional, grow tax deferred.
Sandra Reynolds, CFP
Sandra Reynolds, CFP® specializes in the financial issues affecting women and their loved ones.
Sandy has been a guest speaker and participant at the State Treasurers’ Money Matters Conference for Women in Massachusetts and Maine. She has also been quoted in articles for “Investment Advisor”, “Financial Planning”, and “The Journal of Financial Planning” magazines as well as appearing on WOMR 92.1 radio. She is a retired teacher and adjunct faculty for the College of Financial Planning.
Sandra Reynolds, CFP® welcomes clients from all walks of life with varying income and net worth levels. She offers clients a safe, relaxed and non-judgmental atmosphere where they can explore their values, goals and life plans.
Securities and Investment Advisory Services Provided through Capital Analysts Incorporated Member FINRA/SIPC.
Please feel free to contact Sandy at 508-636-6521 or visit www.reynplans.com
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