In this week's Financial Friday's series, Paul Scott with Scott Insurance in Fredericksburg says if you want to save for retirement, a Roth IRA is a good option. It requires a mere $50 a month and you have to get the money from a paying job. For 2013, the limit to put in is $5500.
The interest earned on the investment is not taxable if you wait until you are 59 and 1/2 to withdraw it and have had it for five years or more. If you need money sooner, there are also exceptions like; the down payment on a first-time home, college expenses of immediate family members, some major emergency medical issues and others. The amount you can withdraw is usually limited to what you have contributed, since it was already taxed before it hit your paycheck.
Eight in ten people surveyed by Financial Advisor online say financial advice helps and saving for retirement is on their goal list.
Next in our series, on April 19th, learn more on why considering a 401K might be the right option for you. For more financial advice, visit http://paulscottinsurance.com