Top Reasons to Invest for Retirement

Here is a breakdown of the inherent benefits and incentives involved in retirement planning.

Choice

There are unlimited investment options available in today’s world. You can stay with a simple index fund or you can tailor your choices.

Low Costs

The costs of investing in retirement plans and IRA’s have never been lower. You are empowered to do internet research in conjunction with seeking advice from a financial advisor.

Tax Incentives

401(k) plans and IRA’s offer you tax advantage. You can get a tax deduction today (traditional plans) or get tax-free growth on your deferrals via a Roth. The government wants you to save and is providing valuable tax incentives!

Compound Interest

The longer you have money invested, the more you can earn on it. The concept of “making money while you sleep” does not need to apply only to the super-wealthy. This same principle applies to anyone who maintains a disciplined retirement planning regimen.

For example, if a 20 year-old were to invest $5,000 and maintain annual returns of 8%, that initial investment would balloon to $160,000 by retirement age. The same $5,000 invested by a 40 year-old would only be $40,000 by retirement. If “slow and steady wins the race” is too cliché, then think of it this way: the best plan is to let your money work for you.

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