Getting Ready for Retirement
Published on March 12, 2024
•2 min read
Retirement may feel far away—but it’s never too early to prepare for it.
If you’re a full-time employee with benefits, chances are you’re contributing to a 401K plan through your company. Contributing as much as you can and taking advantage of the company match will surely add up throughout your working career.
Unfortunately, that may not be enough to do all you want in your retirement (especially if you want to retire early). You could also be self-employed, part-time, freelance, or looking to just invest—whatever the case, an IRA account gives you the chance to plan for your future.
2024 Maximum Contributions
New in 2024, people aged 50 and under can now contribute $7,000 a year toward their IRA. People age 50 or over can contribute $8,000 a year. You can begin with withdrawing from the account at age 59 ½.
Think about this: if your contribution is maxed out each year for 10, 20, 30 years—depending on when you opened it—earning 3, 6, 10% a year after investment, that means you’re making more money on your money.
So, which account makes the most sense for you? Well, let’s look at the different types of IRA accounts:
Traditional IRA
- Create a balanced, long-term savings plan that will help provide safety and security.
- Contributions may be deducted from your taxable income, reducing the income taxes you pay now.
- No income limit to open the account.
Roth IRA
- An easy and safe way to plan.
- Withdraw contributions any time, tax-free and penalty-free.
- No mandatory distribution.
- Contributions are not tax-deductible, but the earnings are tax-free if your funds have been in the account for at least five years and you are either over age 59½, disabled, or buying your first home.
What’s Next
You’ve opened an account. That’s great—so what’s next? Now, it’s time to consider how you’re going to invest that account – your money won’t grow if you don’t invest it.
If you’re just starting out, Metro’s unique IRA offerings, like our IRA Accumulator and IRA CDs are great options to start your retirement fund. As your IRA savings grows, you can diversify with other investments such as mutual funds, stocks, bonds and index funds. One of those can be option when figuring out the best way to save for your retirement.
It can seem a little overwhelming to pick the best investment option for you, which is why we recommend consulting with a financial advisor.
