How many of you have a job that gives you a 401k?
If you're like me and work as a server then your employer would probably laugh at you if you ask for a 401k through them.
Like you already know if you've read previous posts, I'm a horrible money saver. So I did some research and found out that there are other types of accounts you can open strictly for saving that you cannot touch (which is exactly what I needed!).
They're called IRAs, or Individual Retirement Accounts. Basically you put money into it and you can't touch it for x amount of time, depending on the institution where you set it up at. They do earn interest over time, and taxes are paid depending on what kind of IRA you open (traditional or roth).
I go to my bank whenever I have extra money and I strategically deposit money into my checking, saving, and IRA account.
It may seem nerdy to start saving for retirement at the ripe age of 23, but hey, I don't want to work til the day I die. When 50 or 60 rolls around, I will have choices.
It's all about the choice, and I would rather have them then not... that's for sure!
A regular IRA is tax deferred until you withdraw funds from it. A Roth IRA is tax free because you pay the tax on the funds deposited, and the interest or gains earned on Roth funds are tax free as well. With the current tax rates so low right now a Roth is definitely the way to go. Pay the tax now while you are in a lower tax bracket.
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