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 | As reported by Fidelity Investments in their recent “Retirement Trends” survey, 96 per cent of Americans investing for retirement don’t recognize the latest contribution limit for an individual retirement account, with some even guessing as low as $1,000. As a matter of fact, from $3,000 in 2004, the IRA contribution limits rise to $4,000 for the tax year 2005.
Tax refunds When it boils down to understanding certain facts about retirements, erroneous interpretations can mean lost opportunities. Contemporary workers will be confronted with increasing health care costs once they retire, likewise of declining pension benefits and a more expensive cost of living. That's why it's important to save as much as possible, and as early as possible, in tax-advantaged accounts like IRAs. Familiarizing with the facts can held discard widespread fabrications that may drive away some investors from making a wise decision of saving in the IRA. According to the Retirement Trends survey just about one-third of Americans in their prime savings years who have not invested in an IRA account yet consider their 401(k) savings sufficient for retirement. However, Fidelity estimates that retirees will need approximately 80 percent to 100 percent of their pre-retirement income to live comfortably. `But Fidelity calculates that retirees will require approximately 80 percent to 100 percent of their pre- retirement income to live contentedly. Using an IRA now to supplement workplace programs can help investors make sure their savings will continue to grow and last throughout retirement. For the one in four non-IRA owners surveyed who say they can't afford the initial investment required to open an IRA, opportunities to save even more for retirement may be daunting. But getting started without an initial lump sum is as easy as setting up automatic monthly payments through a Fidelity SimpleStart IRA. The truth is that younger investors could benefit the most by starting to save early because they have time on their side. The Retirement Trends survey reveals that about two-thirds of young adults above 30 years old have started to invest for retirement. Starting to save as early as possible is definitely one of the best ways to prepare for the future. tax refunds |
