New research shows there’s good news for women and their wallets.
Turns out, women are now more likely to contribute the maximum allowed to an IRA than men – 41 percent vs. 34, according to financial services organization TIAA-CREF.
And when it comes to being aware of what’s tax deductible, IRA benefits and making catch-up contributions – women came out on top there, too.
The big takeaway: today’s career women are getting savvy about their finances – especially when it comes to planning their futures.
“Women are taking a more active role in retirement savings,” says Annie Gottbehuet, a director in TIAA-CREF’s Wealth Management Group. How can you jump on board?
“Many investors wonder why they should invest in an IRA even if they have a workplace retirement plan,” she explains.
“One strategy is to contribute money to the workplace plan up to the match provided by your employer, then contribute the maximum, if possible, to an IRA.”
Even if you’ve been putting it off or funds are tight, Gottbehuet recommends resisting the urge to delay retirement saving and investing.
“Even setting aside a few dollars each week for a workplace retirement savings plan or an IRA can have a significant impact on the size of your nest egg.”
Contribution limits for a Roth IRA in 2012 are $5,000 for those under 50 years, and $6000 for over 50. If your employer doesn’t offer a retirement plan, experts suggest contributing to a Roth IRA.
Bonus PINK Link: Determine if an IRA is right for you with our online exclusive.
Are you contributing the max to your IRA? and let us know.
By Caroline Cox
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