What's the difference between IRA and 401(K)?
An IRA is a savings plan that offers tax advantages to an individual to set aside money for retirement where as a 401(K) is when the employer allows an employee to have a certain amount taking from their paycheck and put into an account and not pay income tax on it until the money is withdrawn during retirement.
What is Social Security?
Social security is when the U.S. government helps individuals by providing money, mainly to those who are retired and the money will help them live a "normal" retired life. Sometimes it is refereed to old-age assistance.Why is it a big issue now?
It is a big issue now because the economy is rising and everything is costing more. People are scarred that they won't have enough money to survive on.
How does retirement relate to personal savings? Retirement relates to person savings because you have to save up your money in order to have a retirement fund. If you don't save any money then you won't have any money to use in the future.
Why is it important to start looking at retirement funds now, as to ten years from now?
It is important to save some money for your retirement now and so it will start to be building up where as if you start in ten years you won't have as much to live on. Once you have a stable or steady paycheck it is a good idea to start a way to save up for your retirement.
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