From the course: Personal Finance Tips and Tricks

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401(k) and IRA

401(k) and IRA

From the course: Personal Finance Tips and Tricks

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401(k) and IRA

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- If you're trying to save for retirement, anything that can help you build up your savings is a bonus. In fact, any way that can help you keep more of your money and grow it should be a part of your financial plan. But often, it's not. Why is that? Because they're branded retirement plans, and that sometimes translates to, eh, there's no urgency for me to address this today. Well, in this movie, I'd like to challenge that thinking. Because the sooner you start, the better off the future you will be. Let me begin by outlining the key benefit to retirement plans, and that is the fact that they are tax advantaged. This means that the money that you put away for later will not be treated the same as money in your bank account or regular retail investments. And this can help you build up your retirement savings. There are two types of tax advantages. Tax deferred, these plans take your money out of your salary, usually before tax is applied, and put it in an account where you invest your…

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