Section 7.2 Focus

In this section, you will explore how much money you need to obtain financial security in later life. We will focus on the differences between types of retirement vehicles, different tax advantages between 401(k)'s and IRA's, how employer-based retirement contributions match work, and why it’s important to start investing for retirement as early as possible.

Read

The Index Card Rule #3: Max Out Your 401(k) and Other Tax-Advantaged Savings Accounts (pages 67-89)
4 Questions to Determine Your Retirement Nest Egg
Review this Summary of Retirement Savings Plans (FINRA)

Watch

Watch these videos about saving for retirement, IRA, 401(K), traditional versus ROTH IRA.

Is it Even POSSIBLE to Save for Retirement?

What is an IRA?

What is a 401(k)?

Traditional Vs ROTH IRA - Which Should YOU Choose?

Note 1: No questions on Quiz 7.2 are drawn from this video. We have included it in case you are interested in the differences between traditional and ROTH IRA's. Note 2: The maximum contribution for workers under 50 years old increased in 2019 to $6,000 per year and the maximum contribution for workers over 50 increased to $7,000.