Encourages Retirement Savings for Consumers in their Twenties

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In light of a June 19 Fox Business report entitled “401(k) vs. Roth IRA: Which Retirement Account is Best for You?” financial advice website advised its readers to start up on either a Roth IRA or a 401(k) as young as possible in order to get the most out of their contributions with regards to compounding and interest, and reviewed the perks and disadvantages to both types of plans

If your employer offers to match the amount of money that you put in each month, it’s a no-brainer to go for it. But the reason I like the Roth IRA so much is that it’s so accessible. financial advice website today released its pick for the most convenient and opportune type of retirement account, and encouraged readers to begin contributing to one or the other at as young of an age as possible.

In a recent Fox Business article published on June 19th 2013, Lindsay Konsko reported that back in the days when employers used to fund the retirement pensions of their employees, planning for retirement was simple. However in just a few generations, consumers are largely left on their own when it comes to saving for retirement. Employers might offer 401(k)’s, but gone are the days when all employers fund retirement pensions. Konsko compared the Roth IRA side by side with the 401(k), which she stated are two of the most popular options for retirement saving, and highlighted perks and drawbacks to each style of saving. encouraged its readers that whichever route they decide to go, it’s a wise idea to begin saving for retirement as young as possible. is quoted as saying, “If I had a nickel for every time an older person said to me when I was in my young twenties that I should open up an IRA, I could fund a whole second IRA. I didn’t understand it then, but the seniors had a point. Stashing away money when you’re young simply gives it more time to compound, earn interest, and grow. The ironic part about it is that the older we get, the more we start thinking about saving for retirement. But the younger we are, the better it is to start. So now I’m the one spreading the advice. Whether it’s through a 401(k) with your company or a private IRA, I can’t recommend it enough to our readers to start as early as possible—in your early twenties, preferably. Letting your financial future unveil itself without planning is a bit like getting no medical exam life insurance; there will be an outcome, but it just is not certain what that outcome will be."

In the above article, Konsko recommended different types of retirement savings accounts to different types of people. She stated that a 401(k) is better for employees who prefer to have a portion deducted from their paycheck, or whose employers’ match their savings, or if they prefer to defer paying taxes on savings until retirement, or if they make too much money to contribute to a Roth IRA. She recommended a Roth IRA to those consumers whose employers don’t offer a 401(k), or they prefer to pay taxes on savings in the present as opposed to the future, or if they’d like to be flexible to withdraw from their contributions penalty-free and tax-free.

Between the two,’s pick for retirement is a Roth IRA, but they believe that each person must pick what’s best for them in their present situation. is quoted as saying, “If your employer offers to match the amount of money that you put in each month, it’s a no-brainer to go for it. But the reason I like the Roth IRA so much is that it’s so accessible. You can be any age to have one, as long as you have income, unlike a 401(k), which has to be through your employer—and not every employer offers them, especially not if you are working part-time. But honestly, if you’re ten years old and mowing your neighbors’ lawns for money, that’s considered income. The other thing I like about Roth IRAs is that you can deduct from it with no penalties—as long as it’s been open for at least five years. That’s why it’s a great idea to start depositing money into it in your twenties, because then by the time you’re ready to buy your first house, you can withdraw from your Roth IRA up to $10,000 for the deposit. If the account is not open for at least five years, you’ll get slapped with a 10% early penalty fee. ”

About is an online finance advice magazine for the “average Joe” American consumers who are looking for advice and tips on topics such as money management, debt, credit, and budgeting. enjoys assisting consumers with managing their finances, and hopes to relay important education and guidance that can help people make smart and influential financial decisions.

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