Deposits into a standard IRA are not subject to federal tax, but withdrawals are. The Roth IRA taxes your deposits but not withdrawals. IRA earnings are tax-deferred or tax free until retirement. Get equity by buying a home Invest in a home, and pay off your loan early. While a mortgage is the largest debt most people will take on, home ownership, with the equity you build up, is one of the best ways to save money.
Borrowers can save substantially by speeding up their mortgage payments.
Take advantage of your employer's retirement plans. Nearly half of all employers offer some kind of contribution to their employees' retirement. Take stock of your assets Figuring out your net worth tells you how much money you have in cash, securities, real estate, property and other assets. That helps you determine how much you need to save and invest now to reach your retirement goals. Experts recommend your annual retirement income should be equal to about 70 percent of your current annual income to maintain the same standard of living.