United States  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Ask Bob: The Keys That Millennials Need to Know About Retirement

Video Credit: The Street - Duration: 06:19s - Published < > Embed
Ask Bob: The Keys That Millennials Need to Know About Retirement

Ask Bob: The Keys That Millennials Need to Know About Retirement

A Charles Schwab study, which was released earlier this year, showed that younger generations expect to retire at 60 years old, which is seven years before Social Security kicks in for their age bracket.

Robert Powell--or Mr. Retirement--writes Retirement Daily for TheStreet.

He sat down with two of TheStreet's reporters--Toyn Owusu and Katherine Ross--and Kevin Curran, a reporter for RealMoney to discuss retirement.

Most members of the Millennial and Generation Z generations aren't even considering retirement just yet, but they should be.

Powell breaks down the key topics for retirement.

Retirement Basics: What's a Roth IRA?

Mr. Retirement himself broke down what the younger workforce needs to know.

In general, experts say adults entering the workforce use a Roth IRA for retirement, but over time they should consider using all three types of accounts.

The Roth IRA is like a traditional IRA in one respect: The money in your Roth IRA (including earnings and gains) grows tax-free.

But the Roth IRA differs from a traditional IRA in two ways: With a Roth IRA, you contribute after-tax dollars into the account; Roth IRA contributions aren't deductible.

By contrast, you may be able to claim a deduction on your individual federal income tax return for the amount you contributed to your traditional IRA.

Breaking Down 401k's Those who are new to the workplace may not even know about their company's 401k plan.

Some of the younger generations don't even realize that the 401k is technically an investment.

"A 401(k) plan, named after the IRS tax code section that details 401(k)'s, is an employer-sponsored retirement plan that enables career professionals to save money for their post-working years in a tax-deferred manner.

Once a worker retires, any withdrawals from a 401(k) plan are taxed by the IRS," wrote TheStreet contributor Brian O'Connell.

"Any contributions to a 401(k) plan can be deducted from the plan participant's taxable income; assets accumulate in a tax-deferred manner.

The idea behind 401(k) plans is to defer taxes until retirement, at which point, the plan participant is in a lower tax bracket.

401(k) plans are by far the most widely used employer-based retirement plan." Most Millennials don't know that, by having a 401k, you are investing even if you're not actively trading stocks.

"401(k) plans can--and do--offer stocks, stock funds, bond funds, money market funds, exchange-traded funds and annuities," wrote O'Connell.

Investing Through Apps Don't want to lose money in the stock market but want to start building up a portfolio?

Apps such as Robin Hood, Stash and Acorns are becoming more and more popular for the younger generations who want to start small.

It's never too late -- or too early -- to plan and invest for the retirement you deserve.

Get more information and a free trial subscription to TheStreet's Retirement Daily to learn more about saving for and living in retirement.

Got questions about money, retirement and/or investments?

Email [email protected]

0
shares
ShareTweetSavePostSend
 

Recent related news from verified sources

Jaguars rookie safety Zedrick Woods submits retirement paperwork

Jaguars rookie safety Zedrick Woods submits retirement paperworkJacksonville Jaguars undrafted rookie safety Zedrick Woods has submitted retirement paperwork instead...
FOX Sports - Published

See where Missouri, Illinois rank among best states for retirement

Relocating to another state after retirement isn't uncommon, and might involve chasing better weather...
bizjournals - Published

What Is Full Retirement Age and Why Does It Matter?

Do you know what your full retirement age is? It matters a lot because your full retirement age...
Motley Fool - Published

Planning for Retirement? Don’t Forget This Key Step

This post Planning for Retirement? Don’t Forget This Key Step appeared first on Daily...
The Daily Reckoning - Published


You Might Like


Recent related videos from verified sources

These 5 Jobs Can Make You a Millionaire Before You Retire [Video]These 5 Jobs Can Make You a Millionaire Before You Retire

Becoming a millionaire is a dream for many people -- but it's not impossible anymore. If you want to become a millionaire before retirement, you should aim for one of the highest-paying jobs out there.

Credit: GOBankingRates     Duration: 01:33Published

Al Franken Says He 'Absolutely' Regrets Resigning From Senate [Video]Al Franken Says He 'Absolutely' Regrets Resigning From Senate

Al Franken weighed in on his resignation in an interview with The New Yorker.

Credit: GeoBeats     Duration: 00:38Published

The Karnatka Floor Test, Chandrayaan's Second Shot, Dhoni's Retirement Reports And More News [Video]The Karnatka Floor Test, Chandrayaan's Second Shot, Dhoni's Retirement Reports And More News

The Karnatka Govt Will Face The Floor Test Today.. The Speaker Has Asked Mlas To Keep The Dignity Of The House In Mind While Making Thier Speeches And Also To Refrain From Time Stalling Tactics...

Credit: Oneindia     Duration: 02:53Published

THE KARNATKA FLOOR TEST, CHANDRAYAAN'S SECOND SHOT, DHONI'S RETIREMENT REPORTS AND MORE NEWS [Video]THE KARNATKA FLOOR TEST, CHANDRAYAAN'S SECOND SHOT, DHONI'S RETIREMENT REPORTS AND MORE NEWS

THE KARNATKA FLOOR TEST, CHANDRAYAAN'S SECOND SHOT, DHONI'S RETIREMENT REPORTS AND MORE NEWS

Credit: Oneindia     Duration: 02:30Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.