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How to Fully Fund an IRA When You Have No Extra Money

saving for retirement

Everyone knows how important it is to save for the future but sadly, about half of families in the U.S. have nothing set aside for retirement. Whether it’s lack of access to an employer sponsored retirement plan, stagnant wages, or the lure of instant gratification that makes paychecks disappear, it’s clear that Americans are not saving enough. No one can make companies offer 401(k) plans, and it isn’t always possible to control what a job pays, but there are other ways to fund retirement, even when you seem to have no extra money. Set up an IRA If you’re job does not offer a retirement plan, it’s very easy to set up an IRA. I personally like Betterment for beginners because you won’t have to choose funds or rebalance, but there are many low cost brokerages that will allow you to open an account with no minimum. For 2016, IRA contribution limits are $5,500 with an extra $1,000 catch up contribution allowed if you are over age 50. A Roth IRA offers no tax benefits upfront, but any money deposited can grow and be withdrawn tax free after age 59 and a half. Singles earning less than $117,000 and married ...

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