For speed and convenience, they rely on power tools. Americans saving for retirement should take a cue from home improvement pros.
IRAs are a tremendous gift from our federal government.
Being able to accumulate savings without paying taxes on it each year increases the amount of money you have to grow and compound. Reinvesting boosts gains If you're not yet eligible to take distributions from your IRA, your earnings are automatically reinvested. Imagine the potential for added growth if you contribute and reinvest every year. Average costs over time If your IRA is invested in stocks, you may be concerned about identifying the right time during the year to make your contribution. But instead of trying to time your investment, tap into the power of dollar cost averaging.