70.5k views
3 votes
Leroy who is 32 and makes $48,000 per year participates in his employers 401k plan, but would like to save additional funds for retirement. You would most likely recommend

1 Answer

1 vote

I can suggest the following recommendation based on the given information:

Leroy can consider opening an individual retirement account (IRA) in addition to his employer's 401k plan. An IRA is a tax-advantaged savings account that can help Leroy save extra funds for retirement. There are two types of IRAs – Traditional and Roth. Leroy can choose based on his tax situation and retirement goals. In a Traditional IRA, contributions may be tax-deductible, and earnings grow tax-deferred. In contrast, contributions to a Roth IRA are taxed upfront, but withdrawals are tax-free in retirement.

Overall, Leroy should consult with a financial advisor to understand his retirement goals and risk tolerance to make the most suitable decision for his retirement savings plan.

User Carl Brubaker
by
7.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.