Tax Breaks for Retirement Investors

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I'm 26 years old and i have start any IRA or retirement plan for the future. I dont make much income right now, about $34,000 a year. HOw much would you advice me to start investing and how soon so i need to start? and whats the best way to start since in my job they dont provide 401k plans?

Ada of NJ 4:16PM June 18, 2010

If you are retired and wanting to invest money, do not invest in the stock market; if you do, it should be less than 5% of your total assets, but I would recommend to stay completely away. The stock market is too risky if you do not have time working in your favor, so you should only invest in mutual funds, cd's, or bonds, even though they are of low interest, they are safe.
The only reason I think anyone in retirement should invest in the stock market is if they are wanting to leave an inheritance to their children. By willing your stocks to a child you have now put time back in your favor (well, your kids) and it should be somewhat of a safe investment.

J. of HI 11:30AM June 18, 2010

saving for retirement hasn't come easy for me...my question is: can we open IRA's after age 62? what do you suggest for SSS funds that we collect during retirement.what is a good strategy to save money, even if it is after retirement age...do mention taxes on that too, please....thank you

amaldi of CA 8:48AM June 18, 2010

I will give it a try starting from this Month. Thanks for sharing...

Mang Louanges 8:26AM June 18, 2010

Since it's an IRA and not a Roth, you must pay taxes on the withdrawn amount. You could calculate whether a Roth Conversion, even a partial, is appropriate for you.
The 401K is a wonderful investment, esp. if your employer has matching contributions. Think very carefully because the govt. is using Wall Street in some cases as a scapegoat. Our govt. is also responsible for what is happening to our economy but fail to take responsibility--think Freddie Mack and Fannie May etc.

Gee of NJ 6:10AM June 18, 2010

Question: At 70 1/2, we are forced to withdraw a % of our IRA. What would be a good investment for this money? Any escape from paying tax on the withdrawn amount?
Thanks

D. Lloyd of CO 10:52PM June 17, 2010

Good stuff, dude!

Nine of CA 10:25PM June 17, 2010

401 K is another wall street scam. the money contribute to 401 K is to feed walls street blood sucker and they tell you if is benefit u ...

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RAMANLAL D BHAKTA of TX 6:33PM June 17, 2010

This article is so elementary that it's nearly useless. If this is what the average secondary school graduate, or anyone, needs to figure their future financial happiness we need more basic business / economic education in the public schools.

l pierce of VA 6:29PM June 17, 2010