| Q. Won't my employer provide me
with a full retirement package?
A. Some employers do not provide a retirement plan for their
employees; some provide a limited retirement plan. While
participation in some retirement plans are mandatory, some
are voluntary. Most everyone can contribute to a Roth IRA
or Individual Retirement Account (IRA), on their own. You
must meet minimum eligibility requirements. Q. My co-worker says I will lose money if I do not participate
in my company-sponsored retirement plan. How is this possible? A. Your co-worker is right. You can lose money if you do
not fund your company-sponsored retirement plan. Take a look
at the following and you can add up the losses for yourself,
if you do not fund your account. The
funds you place into your retirement account come "off
the top," which means, the money you pay into your retirement
plan is not taxed before it is placed into your account. Many
employers have a "matching plan." This means
they will match or partially match the amount you place into
your retirement fund. The interest grows tax-deferred, and with compounded interest
gained from many investments, this amount can grow to a sizable
amount in just a few years. Looking at the three previous statements you can see how
you can make money in your company's retirement account.
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