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Rest Easy:
Saving for
Retirement,
Part Three
B Y S Y L V E S T E R K N O X
Retirement
Accounts
Now that we’ve covered how to
set retirement goals and
maintain a savings account, I
want to dive into accounts that
are specifically intended to be
long-term investments, and are
typically used for retirement.
Traditional
IRA
Anyone can open a traditional
IRA and contribute. All of the
money they contribute goes into
the account right away, without
taxes. However, taxes are then
withdrawn when you deduct
funds. You’ll earn interest on your
balance, but you cannot access
your money early. You also are
required to withdraw money
when you are 70 ½.
Roth IRA
A Roth IRA is a long-term
retirement account. You are
taxed on the money you
contribute, but you aren’t taxed
when you withdraw that money.
You can withdraw your money
(except for interest earned) at any
time, but you have no
requirements to ever withdraw.
Roth IRAs can be inherited, too.
CDs
CDs (or Certificates of Deposit) are a time deposit, which means you
cannot touch your funds for a set time. If you withdraw early, you will
receive penalty fees. CDs can have great interest rates, and this is
typically dependent on the amount of time you have your money
deposited in one. For example, a 12-month CD might have half the rate
of a 72-month CD.
Thanks for
Watching!
For more information,
please visit
SylvesterKnox.net

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Rest Easy: Saving for Retirement, Part Three

  • 1. Rest Easy: Saving for Retirement, Part Three B Y S Y L V E S T E R K N O X
  • 2. Retirement Accounts Now that we’ve covered how to set retirement goals and maintain a savings account, I want to dive into accounts that are specifically intended to be long-term investments, and are typically used for retirement.
  • 3. Traditional IRA Anyone can open a traditional IRA and contribute. All of the money they contribute goes into the account right away, without taxes. However, taxes are then withdrawn when you deduct funds. You’ll earn interest on your balance, but you cannot access your money early. You also are required to withdraw money when you are 70 ½.
  • 4. Roth IRA A Roth IRA is a long-term retirement account. You are taxed on the money you contribute, but you aren’t taxed when you withdraw that money. You can withdraw your money (except for interest earned) at any time, but you have no requirements to ever withdraw. Roth IRAs can be inherited, too.
  • 5. CDs CDs (or Certificates of Deposit) are a time deposit, which means you cannot touch your funds for a set time. If you withdraw early, you will receive penalty fees. CDs can have great interest rates, and this is typically dependent on the amount of time you have your money deposited in one. For example, a 12-month CD might have half the rate of a 72-month CD.
  • 6. Thanks for Watching! For more information, please visit SylvesterKnox.net