Given this economic climate, your first inclination would probably be to withdraw your retirement savings and stuff all the cash into your mattress.  Not only will that probably be insufficient for proper back support, it may also prove detrimental to your retirement!

The folks over at ChicagoDefender.comjust gave us the basics of Individual Retirement Accounts and why they may be better at giving you a good night's rest.

An IRA is an interest-earning retirement account where the money you save is a tax deduction. As you save money you are earning compounding interest on your savings which is not taxed until the money is withdrawn, without any penalty after age 59-and-a-half. The IRA savings are FDIC-insured for up to $250,000. No one has ever lost a dime in a FDIC-insured account. Its consistent and steady rate of return makes it an excellent tool for help building financial independence at retirement. And because it’s safe, it provides the “peace of mind” that comes from knowing you’re saving money responsibly. There are many IRA options available today. But the basic idea is the same-up to $5,000 per year can be deposited into an IRA account tax free and another $1,000 if you are 50 years of age or older.* While they differ in small ways, all IRAs: earn tax deferred interest on your contributions; may be tax deductible from federal income tax; and require a modest minimum deposit amount to open an account. Some IRAs include:

• Traditional IRAs, which allow you to defer taxes on the earnings of your contributions until they are withdrawn.
• Roth IRAs, which offer only nondeductible contributions and tax-free withdrawals for certain distribution reasons after a five-year holding period.
• IRA Certificates of Deposit, which offer a guaranteed fixed-rate of return and is renewable when it reaches the original date of maturity, helping to increase savings with predictable interest earnings.

Click here to view the article in its entirety. And, remember, even if you have a tricky situation, I have excellent professionals standing by to help you out (click here).

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