Retire Richer, Not Riskier: Smart IRA Options for Your Retirement Savings

Been working hard and saving for retirement in your company plan (like a 401k or 403b) for years? Now you're moving on to a new job, retiring, or maybe already enjoying your golden years! But what happens to that money?

Here are 3 choices to consider:

1. Leave it where it is:

This might seem easy, but there are catches. You might have less control over how your money's invested, and getting it later could be tricky.

1. Cash it out:

Yikes! This means big tax bills and penalties if you're younger than 59 ?. Ouch!

1. Roll it over to an IRA:

This is usually the best option! An IRA is a special retirement account that lets your money keep growing tax-deferred (meaning you don't pay taxes until you take it out). This also helps you avoid penalties if you're younger than 59 ?.

Think of an IRA as a special tax-sheltered box for your retirement savings. But there's more! Inside your IRA, you can choose different investments to reach your retirement goals.

Here's a breakdown of some IRA investment options:

• Mutual Funds: These let you invest in a variety of companies, but there's a risk: if the market goes down, you could lose money.
• Bank Products: CDs and Money Market funds are safer, but they might not keep up with inflation (rising prices). Imagine earning 2% interest on your money, but inflation is 4%. In that case, your money actually loses buying power!
• Annuities: These can offer a guaranteed interest rate or even track the stock market without the risk of losing money. They can also help protect your savings from inflation. There are different types, so it's important to choose one that fits your needs. There might be fees or penalties for taking your money out early, so be sure to understand those too.

Confused about IRAs or which investment might be right for you? No worries! You can reach out to me directly and we can chat about your specific situation.

Remember, a little planning now can make a big difference in your golden years!

You can reach me at 612.217.0157 would love to chat.

Get a FREE copy of Tax Free Long Term Care Insurance in a Post COVID World https://www.taxfreeltcbook.com/

#RetirementPlanning #IRAs #FinancialSecurity #RolloverYourSavings #YourRetirementYourWay