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As a young married couple, the thought of retirement
is probably distant, at best. But when statistics prove many young women
will be spending at least one-third of their lives alone and nearly 85
percent of all elderly poor are women, you need to plan for the future
now.
Financial experts say that for an individual to enjoy
a comfortable retirement, an annual retirement income of 60 to 80 percent
of his or her final working year's salary will be needed. That's a lot
of income to accumulate in a retirement plan. But, by beginning to save
at an early age, your retirement savings can grow tremendously. You can
begin by contributing what you can afford to your employer's 401(k) or
similar retirement plan. If you're self-employed, you can set up a Keogh
plan. You can also set up an individual retirement annuity or Roth individual
retirement annuity.
The Roth IRA may allow your earnings to grow tax-free.
Each of the other plans allows your earnings to grow tax-deferred. That
means you won't have to pay taxes on the earnings until you retire, when
you'll most likely be in a lower tax bracket. Because tax-deferred and
tax-free savings grow much quicker than taxed investment savings, these
plans offer a huge advantage in building your retirement savings -- especially
if you start now.
As newlyweds, you have many happy and exciting years
ahead. You can make your lives together even more enjoyable by getting
an early start on your financial planning.
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