Retirement plans need to be made early in your life. You can never start too early but 20 is a good age to begin the process. Many people do not think about retirement until their 30's or 40's. 10 to 20 years is a terribly long time to waste. With President Obama announcing measures to make it easier to save, you should get started.
So what is an IRA? It is an individual retirement account that provides a savings plan offering tax benefits. There are traditional 401(k)s and Roth 401(k)s. The choice is ultimately yours but if you are in a higher tax bracket you may want to opt for the traditional IRA. It may also be a good idea for your money to be tax diversified.
There are many other options available to you. If you are having a hard time deciding what to do, get a financial planner to help. And do not wait too long. Without a proper savings plan you could easily slide into debt or go bankrupt.
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