Retirement is always something that can be planned for and, while 401(k)s have been a popular option, when it comes to planning for the future, Roth IRAs are becoming a more popular investment strategy for those who are looking for ways to save for retirement. Many people choose a Roth IRA simply because they can be a lucrative investment and earnings can be used tax-free if withdrawn after the IRA holder is over 59.
Many men and women who have seen how easily a job can be lost, despite years of service, feel that there are uncertainties in specific retirement plans or that a job could be lost at any time. The recession and vast numbers of layoffs which were experienced over the past years have many more aware that security is needed when they get closer to the age of retirement.
While, obviously, numerous individuals wish to plan for retirement and hope that they can find financial security later in life, many workers were just relying on their 401(k) or retirement plan offered from their employer, but may have been suddenly hit with unemployment and found themselves with nothing.
Men and women who choose to invest in a Roth IRA do so, also, because this type of investment for retirement doesn’t have to be associated with a specific employer. Also, there are those who feel Roth IRAs can be better tailored to an individual’s age, which allows for less risk over time. While Roth IRAs are not a guaranteed investment, they are viewed by many to be a safer form of retirement planning, as again, the amount of risk which can be taken may be lowered as an individual ages and gets closer to retirement.