One of the most powerful ways one can influence their retirement funds is through personal contributions.
Something most don't consider is that if they do not contribute to the current year (past year, until tax filing), they will never be able to contribute to that year again. For example, one is employed for 40 years of their life, but they do not contribute until after tax filing in their 21st year of employment. This person will never again have the opportunity to contribute for those first 20 years, regardless of availability of assets. The difference could be hundreds of thousands of dollars in lost contributions, not to mention potential market growth with compounding (future blog). Let's just use the current (2019) IRA contribution limit of $6,000. Multiply that by 20 years. This is $120,000 in contributions over time.
The point is, do whatever you can to contribute. Retirement accounts all have tax favorable options that I would be happy to explain. If you do not have the means, but a family member does, combining a gifting strategy from a relative with a contribution into your retirement account could be an option. As long as you have earned income, you can contribute up to 100% of the amount earned, up to the annual limit.
The 2018 deadline is approaching.
Again, I would be happy to explain.
Income limitations may apply. Withdrawals from IRAs prior to age 59½ may be subject to a 10% penalty tax.
This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.