Building Your Retirement Portfolio
In Lesson 2, we'll explore various retirement accounts that can serve as the foundation of your retirement savings. Understanding these accounts is crucial for maximizing your retirement readiness.
Common Retirement Accounts
- Employer-sponsored retirement plan. You contribute a portion of your salary, and your employer may match a portion of your contributions. It offers tax advantages, such as tax-deferred growth and potential employer contributions.
- Individual Retirement Account: A personal retirement account that you can open independently.
- Simplified Employee Pension: Designed for self-employed individuals and small business owners. They offer a straightforward way to save for retirement like NSSF voluntary contributions.
Choosing the Right Retirement Account
The choice of retirement account depends on your employment status, income level, and tax considerations. Factors like employer-sponsored plans, contribution limits, and your financial goals will help determine which accounts are right for you.