This originally aired on the Catholic Faith Network's show CFN Live. Click the link to…
In 2015 the Individual Retirement Account (IRA) as we know it turns 40 years old. Many who were familiar with IRAs in the beginning probably cannot believe how things have changed in 40 years.
Throughout the past 40 years, IRAs have transformed from an account created for retirement savings that was originally only available to workers who were not covered by employer-sponsored retirement plans to a seemingly ubiquitous retirement tool utilized by approximately 43 million Americans.
According to the Federal Reserve, in 2014 there were $3.1 trillion in pensions, $5.3 trillion in 401(k)-type plans and $7.2 trillion in IRAs (mostly rollovers).
Many Americans fund their own retirement by saving in a workplace plan such as a 403(b) or 401(k). While this is a retirement strategy, it may not be enough given the increase in longevity. Thanks to medical advances and quality care, most people today live longer and need more retirement savings than someone who retired 40 years ago. Many Americans (about 43 million of them) recognize the need to supplement their retirement savings by funding an IRA.
As America’s top retirement tool, it seems wise that you should do everything you can to protect your IRAs not only to last your entire lifetime, but to pass on to the next generation.
So, if you are like millions of Americans and have an IRA, then you should consider not only how to make your retirement savings grow, but to protect it for the future.
By Eric J. Einhart – Guest Blogger