It’s never too early for students to start investing in retirement
Kevin Holloway
Most college students probably haven’t started to think about retirement, or how to plan for it. When setting up a retirement plan, it is best to determine what kind of plan is the right fit for each person.
Do not feel overwhelmed, because there are professionals to help when making these decisions.
If employed, there may be programs like 401(k) to help start saving toward retirement, depending on if money is being invested.
Those that have 401(k)’s should watch their investments as closely as they would with a bank account.
Investments in oil companies, airlines, and computers prove to be the strongest at this time, while food stores and retail alike seem to suffer.
More than 2.4 million Americans lost their jobs last year, while those not currently affected still worry about job security.
Even if job loss does occur, the money in their 401(k) is still accessible by the person on the account.
When setting up an Individual Retirement Account (IRA) there are two types, the first is a traditional IRA, which allows tax-deductible contributions up to $4,000 a year.
A Roth IRA is another type of account created in 1997 to help out the middle class.
Unlike traditional IRAs, Roth IRAs have less restrictions, allowing one to withdraw contributions at any time without penalty.
By starting an IRA early it increases money down the road, as the account continues to accrue interest over time.
There are many companies that can help with planning financial futures like Merrill Lynch, Fidelity, and just about any local banking institution.
“The only way retirement is possible is by saving these days,” said Christian Hernandez of Citi-financial.
Hernandez was referring to the lack of employee retirement plans today, with the economy on the downside.
Years ago, most jobs offered plans for retirement but as the economic climate continues to change, so have investment options for employees.
