If you’re like many Americans, your 401(k) may be your single largest retirement asset, and it could be your most important one, too. After all, your retirement may last decades, so it’s vital to ensure your money does as well. What you decide to do with your 401(k) after you retire can be a major factor in how long those funds last.
Do you dream of early retirement? Or do you wish you had the ability to enjoy the greater freedom that comes with retirement in your younger years? When you achieve financial independence, that dream can become a reality.
Financial independence is different than traditional retirement. The typical idea of retirement follows a process of working until you reach retirement age and then exiting the working world.
Are you considering using a Roth IRA to save for retirement? Or are you thinking about converting a traditional IRA into a Roth? If so, you’re not alone. The Roth IRA is one of the most popular retirement savings vehicles, primarily because of its tax advantages and flexibility.
With a Roth IRA, you don’t get an upfront deduction for contributions as you do with a traditional IRA. However, you do get tax-deferred growth while the funds remain in the account and tax-free distributions assuming you are either disabled or 59 ½ or older.
Are you planning to move to a new locale after you retire? Perhaps you want to move south near the beach or the desert so you can enjoy warmer temperatures. Maybe you’d like to experience a different lifestyle in a bustling city or in a quiet countryside. Or you might even want to immerse yourself in another culture overseas.
Whatever your goal, retirement is the time to pursue the life you’ve imagined for yourself. You’ll have no work commitments, no scheduling obligations, and, hopefully, plenty of money to fund your desired lifestyle.
The simple answer to this question is “yes.” There are two main types: (1) municipal bonds and municipal bond mutual funds and (2) tax-free money market funds.