fts create problems for it, let me give you a way to continue saving, but without the hassles.] III. There are several ways to save for retirement outside of Social Security, but one of the most popular, aside from stocks is through an IRA. A. The IRA is the best way to save for retirement.1. IRA stands for an Individual Retirement Account. 2. Basically what you can do with this type of an account is deposit a maximum of $2000 every year, in addition to the minimum $1000 to start the account, and you will earn interest on it. a. The earnings are also tax deferred, which means that you won't be taxed on the earnings until you withdraw it after you're retirement.3. This is a long-term investment so you will be penalized if you take your money out before you retire.a. For example if you withdraw the total $85,000 from your account before you retire, you may receive $10,000 in penalties, $10,000 in federal taxes, and $5,000 in state taxes.b. You may take a loan from your IRA, without penalties, as long as you pay back the loan, and in a sense, yourself. 4. You might be wondering why you should invest your money in something that penalizes you for wanting it back.a. Look at it this way, the idea behind the penalizing is to deter you from spending your retirement money.b. There are short term plans similar to an IRA, called Certificates of Deposits, where you can determine a specific length of time in which you cannot access your money without penalties.5. Some of you might think that starting a retirement plan is difficult.a. Here is an application for an IRA, from the Official Citizen Funds web-site, that gives you an idea of how easy it is to set up an IRA (Citizen, 2001). [Knowing now that an IRA is one of the best ways to save for retirement due to the low risk, compounding interest, spending deterrent penalties, and easy implementing process, let us now focus on how it improves the chances of a comfortable retirement.] IV. According to...
