IRAs Remain Largely Misunderstood

When I read the headline I was floored.  But if the TIAA-CREF survey is right,

80% of respondents said they were not contributing to an IRA, which marks a four-percent increase from last year. Additionally, close to half misunderstood the basics of investing in an IRA and how the money could be used, the study said.

That’s a staggering statistic given that IRAs have been around since 1974.

  “Many individuals are still missing out on the long-term savings benefits of IRAs, simply because they don’t understand what they are and how they work,” TIAA-CREF’s director of financial planning, Dan Keady, said. “By allowing savings to grow on a tax-deferred basis, an IRA can help give your current retirement savings a boost no matter what stage of life you’re in. Even if you’re on a tight budget or just starting to save, if you start small and invest wisely, that amount should grow over time.”

If you want to know more about IRAs ahd how they can improve your retirement, leave us a message.

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