Retirement Plans – What Do They Imply?

If you are looking for a secure and lucrative scheme to invest your savings in order to lead a financially stress-free life after your working years are over, you should turn your attention to Roth IRA. This is specific retirement investment plan where you can make contributions to the fund from that portion of your monthly salary after your employer deducts tax from this income source. Due to this, the amount you withdraw after you leave your present place of employment because of old age is not chargeable to tax. This may seem a feasible option if you are under the assumption that the tax rate is likely to increase when you retire.

Barry Bulakites is an eminent motivational speaker from the United States who expresses his views and gives lectures on current economic situation in the country. A number of television networks also invite him to discuss such issues on their chat shows. Furthermore, this marketing graduate from Western New England College and the London School of Business & Finance is also the President of Table Bay Financial Network, Inc. and its principal distribution officer. This financial advisor specializes in assisting people and organizations in establishing sustainable retirement schemes. His diverse clientele includes corporate enterprises, prominent celebrities from the music world and sportsperson.

This popular financial advisor says Roth IRA is an ideal retirement scheme for young people because it offers them the following advantages:

Withdrawals from the funds are not chargeable to tax

Unlike the retirement schemes that fall under the category of traditional IRA, the withdraws you make under this plan at the time of your retirement is chargeable to tax. This is because the contributions you make to the fund during your employment years is only the portion of your salary that remains after your employer deducts income-tax. 

 

No restriction with regards to age

In the case of individual retirements plan falling under the category of Section 140 (k), you cannot make further contributions of the funds after you across a certain age. In addition to this, you can only withdraw the amount after you attain the age of 70 years and 6months. Fortunately, there are no such restrictions in the case of Roth IRA. 

Flexibility

In comparison to Section 140(k) retirement plans, the Roth IRA scheme allows you to make withdrawals from the fund without attracting any penalty only if you have across the age of 59 ½years. Moreover, you still need to make contributions and maintain the account for a least a period of five years. 

Ideal estate planning tool

Under Roth IRA, you can keep contributing to this individual retirement scheme as long you live without to have to withdraw the money after attaining a certain age. Moreover, you can transfer this money to your children and grandchildren under a will without them having to pay any tax on the amount they inherit. 

Barry Bulakites says the above advantages make Roth IRA a suitable retirement scheme for young people like you, who are on the verge of starting their careers. You can contribute to the fund as long as you have a regular source of income and even transfer it to your heir free of any tax liability.