It’s never too late to start saving for retirement. Even if you are over 55 and haven’t started planning, there are still ways to ensure your golden years are comfortable and secure. AFI Insurance explains some of the best strategies available to people in Denver, CO to jumpstart their retirement savings.
Traditional IRA vs. Roth IRA
One of the most important things you need to decide regarding retirement planning is which type of account you should open—a traditional IRA or a Roth IRA. Both have advantages and disadvantages, so it’s important to carefully consider your options before deciding.
A traditional IRA offers tax-deferred growth on contributions made throughout your working life. Any money you contribute will not be subject to taxes until you withdraw from the account during retirement. A Roth IRA offers no immediate tax benefits but allows withdrawals during retirement without paying any taxes.
Maximizing Your Contributions
Once you have chosen an account type, it’s time to start contributing as much as possible each month while still being able to cover monthly living expenses such as rent or mortgage payments, utilities, food costs, etc. Whether you choose a traditional or Roth IRA will affect how much money you can put away each month; however, both types offer favorable contribution limits that allow for plenty of financial flexibility over time.
Get Started Today
At AFI Insurance in Denver, CO, our dedicated agents can help you find the perfect retirement plan that fits your needs and goals. We specialize in helping individuals over 50 prepare for their future by offering advice on investments and insurance products designed specifically for those nearing retirement age.