Retirement Planning 101
When it comes to planning for retirement, there are several options available to individuals. Understanding the different retirement options available is crucial in creating a comprehensive retirement plan that meets an individual's financial needs and goals.
One such option is a defined benefit plan, which is a retirement plan that provides a specified monthly benefit at retirement.
Another option is a defined contribution plan, such as a 401(k) or 403(b), which allows employees to contribute a portion of their salary to an investment account that grows tax-free until retirement.
Individual retirement accounts (IRAs) are another popular retirement option, with traditional IRAs allowing individuals to contribute pre-tax dollars and Roth IRAs allowing after-tax contributions to grow tax-free.
Finally, Social Security provides a guaranteed income stream in retirement, with benefits based on an individual's lifetime earnings.
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