To continue the topic of saving the next logical step would be to talk about IRA’s (Individual Retirement Account). Retirement is very important, it is what people strive to achieve, and you want to make sure you have enough money when you do retire so that you do not go into debt, forced back to work or even worse forced to work longer and longer because you can not retire.

So what is a Roth IRA? Does it have anything to do with Star War’s planet Hoth? A Roth IRA is a savings account where you contribute money (around $4000 depends on your age) into a Roth account where the managers then invest the money into securities (Stock and Mutual Funds). Roth IRA’s are NOT tax deductible, and the transactions within the account are tax except. A great online tool to calculate the amount in the account at retirement is here.

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