It is vital that we plan for our future retirement. No one wants to work until they die or be forced to rely on their loved ones to support them financially.

How do we avoid that? There are many different retirement planning methods to choose from. I’d like to discuss briefly an IRA and a 401K.

IRA 401K Almost all companies offer a 401k plan to their employees. In most cases, they will match your contributions 100% for a specified number of years or total amount.nThey have their reasons.

The law requires employers to maintain so many dollars for the benefits they grant employees. This is in hopes of avoiding more cases like Enron had. When they are encouraging the workers to contribute to the fund, they get more dollars to back their package up.

Also, they get to earn more money from the money you contribute to the fund whether by investing in the market or using in their own business. So when it comes time to pay it back to you, they will be paying you back with mostly your money and the earnings from the money you contributed.

IRA stands for Individual Retirement Account. The purpose of these accounts is to make people want to invest in their retirement to kind of take it easy on the social security system. Too many people rely on their 401K and then their company goes under. Then they are left eith no retirement.

Since their are so many types of IRA’s, it may be difficult to decide which is the best for your plan. Discuss your retirement goals with a financial advisor and they can help you see which is the right one.