401(k)s & IRAs For Dummies

Chapter 1

Explaining IRAs and 401(k)s

IN THIS CHAPTER

Finding out about 401(k)s and IRAs

Recognizing the pros and cons of each

Seeing the benefits of saving for retirement

My primary goal is to help people concerned about having enough money to successfully retire. Even young people, for whom retirement would normally be low on the priority list, have jumped on the retirement savings bandwagon. They’re the smart ones, because in some respects, how long you save is more important than how much you save.

Looking forward to not having to work is a worthy goal, but remember the paychecks cease when you stop working. Having enough income to sustain yourself during the next 20 to 30 years isn’t easy. Your plans may be disrupted before you reach your planned retirement age. The current COVID-19 pandemic is an example.

Exploring the Basics of Retirement Savings Plans

A retirement plan lets you put some of your income away now to use later, presumably when you’re retired and not earning a paycheck. This process may not appeal to everyone; human nature being what it is, many people would rather spend their money now and worry about later when later comes. That’s why the federal government ...