tax refunds

As reported by Fidelity Investments in their recent “Retirement Trends” survey, 96 per cent of Americans investing for retirement don’t recognize the latest contribution limit for an individual retirement account, with some even guessing as low as $1,000. In actuality, IRA contribution limits for the tax year 2005 increase to $4000 against $3000 in 2004.

Tax refunds

When it comes to knowing the facts about retirement, misperceptions can lead to missed opportunities. Contemporary workers will be confronted with increasing health care costs once they retire, likewise of declining pension benefits and a more expensive cost of living. That's why it's important to save as much as possible, and as early as possible, in tax-advantaged accounts like IRAs.

 

Familiarizing with the facts can held discard widespread fabrications that may drive away some investors from making a wise decision of saving in the IRA.





Approximately one-third of Americans still in their prime savings age who have not opened an IRA account, believe their 401(k) savings will be adequate for retirement, according to the Retirement Trends survey. However, Fidelity estimates that retirees will need approximately 80 percent to 100 percent of their pre-retirement income to live comfortably. `But Fidelity calculates that retirees will require approximately 80 percent to 100 percent of their pre- retirement income to live contentedly. By means of an IRA now to enhance workplace programs can provide investors with a guarantee that their savings will keep on growing and last throughout retirement.





According to one out of four non-IRA investors surveyed and who say they don’t have the funds for the initial investment, the possibility to save even more for retirement may be overwhelming. But getting started without an initial lump sum is as easy as setting up automatic monthly payments through a Fidelity SimpleStart IRA.



The fact is that younger investors could earn the most by starting to save early because they have the advantage of time. Almost two-thirds of young adults have begun to investment for retirement before reaching age 30 as reported by the Retirement Trends Survey. Starting to save as early as possible is definitely one of the best ways to prepare for the future.





Tax refunds