It is common sense. One of the best things you can do in 2015 to set yourself up for financial success in the future is to be strategic with your savings.
Perhaps you should save as much money as you can in a Roth IRA?
According to a recent article at gobankingrates.com, titled “Why You Need a Roth IRA in 2015,” in the event of an emergency make sure you are able to withdraw your contributions at any time without incurring penalties or fees. This is also a terrific way to save for retirement, because you might be in a higher or lower tax bracket when you are in your 60s.
With a Roth IRA, typically you can withdraw money tax-free after age 59½. If you qualify for a Roth, you could save up to $5,500 in 2015, or $6,500 if you’re 50 or older.
Another type of Roth account for retirement savings is a Roth 401(k). This version has no income limits. If your job has this type of retirement plan (many large employers are expected to offer a Roth 401(k) option in 2015), you can contribute up to $18,000 next year (or $23,000 if you are 50 or older).
Unlike a traditional IRA or 401(k), while Roth contributions will not reduce your taxable income, your overall tax savings (tax-free withdrawals) are likely to be much greater when you retire.
And that is not such a bad thing, yes?
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: gobankingrates.com (December 6, 2014) “Why You Need a Roth IRA in 2015”