The average Social Security payment is around $1,900 per month, barely above the poverty level for a couple.
Employer-sponsored 401(k) plans allow contributions to grow tax-deferred. If an employer offers matching contributions, it’s essentially free money that workers should take advantage of.
Unlike 401(k)s, Roth IRAs require taxes upfront but provide tax-free growth and withdrawals in retirement, offering more flexibility.
Many retirees either thrive or struggle based on past financial decisions. Having a clear plan and sticking to it is crucial for long-term success.
Unlike 401(k)s, which have limited investment options, IRAs allow individuals to choose from thousands of mutual funds, providing greater control over investments.
The IRA contribution limit in 2025 is $7,000, with an extra $1,000 for those over 50. 401(k) plans generally have higher contribution limits.
After reaching IRA limits, investing additional funds in a 401(k) is a smart strategy, even if employer matching has been maxed out.
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