By the year 2033, Social Security’s reserve trust funds could be exhausted. Though people disagree about when the money will run dry and how to avoid it – it could happen in your lifetime. You can prepare for it by starting now.
IRAs (Individual Retirement Accounts) offer young workers the opportunity to potentially receive higher benefits than the current system can afford to pay. They also offer an opportunity to build a nest egg for retirement that the government cannot take away.
Invest regularly and you will be surprised at how the money grows due to compound interest. Consider contributing a portion of your paycheck in one kind of IRA called a Roth IRA.
For example, if you invest $25 a week in a Roth IRA until you retire (let’s say in 50 years) and the money grows at 5%, when you retire you will have $290,644 in tax-free money. If it grows at 8%, you will have $869,583. You only contributed $65,000 to the total—the rest is due to compound interest.
Visit DoverPhila Federal Credit Union today to start planning and investing for your future.