Saving and investing money is crucial for a comfortable retirement.
One of the worst things that can happen to you as you’re getting older is running into financial troubles.
It could mean delaying your retirement, not being able to afford college tuition for your children, and possibly sacrificing your health just when you need it most.
Unfortunately, this has become the reality for many Americans… and is why it bears repeating, saving and investing money is crucial for a comfortable retirement.
The biggest factor contributing to this widespread issue is the lack of workplace retirement savings plans.
Recent studies show that one in three working Americans doesn’t have access to a retirement saving plan through their employer.
If you happen to be one of them, then I have positive news for you.
There’s a new government plan that could help you, and it involves something called an auto-IRA.
What Is An Auto-IRA
Auto-IRAs are not exactly a novelty.
Both state and national government have been talking about it for years.
The idea is to help millions of workers gain access to a full retirement savings plan and all the benefits that come with it.
Once you enroll in a plan, the system will automatically deduct part of your payroll and put it in an investment account. This is then managed by third-party financial services providers, such as BlackRock, Vanguard, and JP Morgan Chase.
Another positive aspect of auto-IRAs is that you can exit anytime you want, should the need arise.
For now, auto-IRAs are available only in a few states, including; California, Connecticut, Illinois, Maryland, New Jersey, and Oregon, as well as the city of Seattle, Washington.
But the good news is, you don’t have to wait for your state to come up with one.
You can actually set up your own version of an auto-IRA no matter what state you live in.
How To Set Up Your Personal Auto-IRA Regardless Of The Location
Setting up a personal IRA is easier than you might think.
In fact, it’s about as complicated as opening a bank account… and we all have those.
And best of all, with this approach, instead of letting the state decide, you get to choose the type of IRA that best suits your individual needs.
The first step is setting up an account with a robo-advisor.
These companies will manage your portfolio on your behalf. Once you’ve wired them the funds, you don’t have to worry about where to allocate them.
Typically, robo-advisors will invest your money in a series of large ETFs, such as the SPDR S&P 500 Trust ETF.
Once you’ve done that, just add the “auto-funding” option, and you’re all set.
If this is something that interests you, I suggest you look at companies like Betterment IRA, Ellevest, and SoFi Automated Investing. They have low fees and don’t require an account minimum.
Alternatively, if you’re looking for a more hands-on approach and want to pick investments yourself, you can set up an account with an online broker.
I’ve created a report on how to do that, which you can read here.
Traditionally, this approach yields higher returns since it eliminates management fees robo-advisors and ETFs charge. You’re basically cutting out the middle man.
The problem is that picking stocks is somewhat of a daunting task if you don’t know what you’re doing.
For that reason, I’ve created True Retirement Wealth, a monthly newsletter focusing on the best stocks to invest in at any given time.
This service provides you the opportunity for steady capital accumulation, even in harsh economic conditions, as well as an above-average dividend yield to supplement extra income.
My new issue goes out tomorrow, go here now to make sure you receive it.