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Boring, but important: retirement savings

By
Nicole White
August 25, 2017
6 min read
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You know what isn’t sexy? Retirement savings. You know what you’ll need to survive? Retirement savings.

Most of have some kind of retirement savings program through our work, and some of us are even lucky enough to get a match from our employer on the funds we deposit. Always take the match! It’s free money and you never want to pass up free money.

If you’re on your own, working that gig economy lifestyle or just getting your business up and running, it’s a little bit tougher to save for the (possibly very far away) future. Automatic deductions are always the way to go when you’re setting up a no-brainer savings approach, and when you pair that with a savings vehicle designed for the long-term, it’s a sure bet.

Individual Retirement Arrangement

Enter the IRA. IRA stands for Individual Retirement Arrangement, and it's basically a savings account with big tax breaks, making it an ideal way to sock away cash for your retirement. There are a few types of IRAs: Roth, Traditional, and SEP (Simplified Employee Pension).

These plans are all pretty similar, the main difference is when you pay income taxes on the money you put in the plans. With a Traditional IRA, you pay the taxes on the back end – when you withdraw the money in retirement. A SEP IRA is pretty much a Traditional, it’s just meant for small business owners and their employees.

With a Roth IRA, it's the exact opposite. You pay the taxes on the front end, but there are no taxes when you take your money out. Roth IRAs are more flexible if you need to withdraw some of the money early.

Roth IRAs allow you to leave the money in for as long as you want, letting it grow and grow as you get older and older. With a Traditional IRA, by contrast, you must start withdrawing the money by the time you reach age 70½.

With all IRAs your money grows tax free while it's in the account.

Impact IRAs

For lots of us, simply investing in our futures isn’t enough, we want to make a difference in the world, too. Swell now offers Impact IRAs that do just that. Now you can rollover your existing IRAs into a Swell Impact IRA or start a new retirement account. It’s up to you! Set yourself up for the future and do some good in the meantime.

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