If You Don’t Have a 401(k), Use An IRA to Build Retirement Savings

I have many blog posts, and I have many conversations about when saving for retirement to use your employer sponsored 401(k) retirement plan. I do sometimes forget that not everyone has access to a workplace retirement plan. Did you know that there are nearly 57 million workers in the U.S. that don’t have access to a retirement plan at work? That’s kind of a big deal because we know that saving for retirement is wicked-important for financial stability later in life.

But check it out! IRAs can be use to save and invest in your retirement when an employer-sponsored 401(k) isn’t an option. In fact, IRAs have helped millions of U.S. workers save over $1.7 billion in retirement savings in recent years! So let’s break down how IRAs work, the different types that are available, and how you can use one to invest in your retirement savings. You can do this all on your own, without a workplace plan. Let’s F’n Go!

What is an IRA?

An IRA stands for an Individual Retirement Account. This is a tax-advantaged investment account specifically designed to help you save for retirement. Unlike a 401(k) plan, which is set up by an employer, an IRA is something you set up and manage on your own.

With an IRA, you can invest in a variety of assets, including:

• Stocks

• Bonds

• Mutual funds

• Exchange-traded funds (ETFs)

• Real estate investment trusts (REITs)

IRAs offer some tax advantages. This makes them a great way to save for retirement. The money you invest in your IRA account can grow tax-free or tax-deferred, depending on the type of IRA you choose.

There are some different types of IRAs, but the most common ones are the Traditional IRA and Roth IRA. Each has its own benefits, so it’s important understand the differences and to choose the one that best fits your financial situation and goals. Regardless of what type of IRA account you choose, there is an annual contribution limit and they max out at $7,000 per year, or $8,000 per year using catch-up contribution if you’re over the age 50.

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