Roth IRA
The perfect retirement plan for working Women
Old age not only declines health but one’s capacity to work and earn money. An average woman is usually better than men when dealing with finances. However, it is important to consider having a back up of her own finances since the Grey years can be lonely and troublesome especially if the woman needs to keep asking for funds from her loved ones.
There are several retirement plans that work well for women depending on their savings and investment needs. For working women who work up to 20 hours a week Safe Harbor Plans have been quite effective. Apart from that, a Traditional IRA and Roth IRA (the modern version) are also recommended.
Prior to committing to any retirement it is important to do appropriate research and consult an expert who can do the entire math for the individual. Most people recommend the Roth IRA, since contribution made already has taxes deducted so withdrawal is tax free. The maturity period if the age of 59 and half after which even the earnings which is the interest or investments held will also not be taxed.
There is not much of a catch to Roth IRA. It was designed specifically for the average working American who dreams of owning a home and spending his money and time with his loved ones and enjoying the Grey years.
The only major limitation to Roth IRA is the rigid income limits laid down in IRS publication 590 which do not work for everyone. In addition to that, upon retirement it is highly likely that one may fall under the higher income tax bracket. So, it is recommended for people who are willing to spend money in their later lives. Then again, Roth IRA does not work for everyone.
There are several retirement plans that work well for women depending on their savings and investment needs. For working women who work up to 20 hours a week Safe Harbor Plans have been quite effective. Apart from that, a Traditional IRA and Roth IRA (the modern version) are also recommended.
Prior to committing to any retirement it is important to do appropriate research and consult an expert who can do the entire math for the individual. Most people recommend the Roth IRA, since contribution made already has taxes deducted so withdrawal is tax free. The maturity period if the age of 59 and half after which even the earnings which is the interest or investments held will also not be taxed.
There is not much of a catch to Roth IRA. It was designed specifically for the average working American who dreams of owning a home and spending his money and time with his loved ones and enjoying the Grey years.
The only major limitation to Roth IRA is the rigid income limits laid down in IRS publication 590 which do not work for everyone. In addition to that, upon retirement it is highly likely that one may fall under the higher income tax bracket. So, it is recommended for people who are willing to spend money in their later lives. Then again, Roth IRA does not work for everyone.
