Why leveraging an IRA can help you Save Smarter for Retirement

 Are you confident you have enough saved for retirement? And do you feel like your money choices reflect your faith, heart and habits? These are challenging questions that may require you to explore your decisions and figure out what, for you and your loved ones, is ultimately enough. For many, retirement is on the horizon, but they are unclear about how to prepare for it. According to a recent national survey, three in 10 workers report feeling mentally or emotionally stressed about preparing for retirement. Yet at the same time, only six in 10 workers say they have saved for retirement and only four in 10 have tried to figure out how much money they’ll need for retirement.
Working with a financial representative can help you evaluate your savings options. In addition to contributing to an employer-sponsored plan, there are other savings vehicles to help boost your level of income in retirement. An IRA, for example, can provide valuable tax advantages, offer greater growth potential over time and allow for higher contribution limits as you age. Let’s break it down:
• Tax advantages: If you have a traditional IRA and contribute the maximum each year, you can take advantage of tax-deferred opportunities to help you get closer to your retirement goals. For example, you could potentially lower your adjusted gross income by the amount you contribute. Doing so could mean you have more money available to help you reach your near-term goals.
• Growth potential: Contributing to an IRA is an excellent way to leverage the power of compounding. With the more money you put in, the more your contribution has the potential to grow at an increasing rate, and the more money you ultimately have once you reach retirement.
• Higher contribution limits over time: Another benefit of an IRA is it allows for higher contribution limits as you age. Once you’re 50, for example, federal IRA rules stipulate you can contribute beyond the annual limit. These are known as catch-up contributions and can give your savings a big overall boost.
Contact Jeff and Melanie Meyer today at 661-799-0230 or JeffandMelanieMeyer@thrivent.com.