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invest in those plans count in your taxable income, and the invested assets can grow
and compound in the account without being taxed. This year and in years to follow,
this means significant tax savings for you. The earnings of these accounts are only
taxed when withdrawn. 2,3
How would you like to save hundreds of dollars per month in retirement? By
saving and investing for retirement using a Roth IRA, that is essentially the potential
you give yourself. Roth IRAs are the inverse of traditional IRAs: the dollars you direct
into them are not tax deductible, but the withdrawals are tax free in retirement
(assuming you abide by IRS rules). Imagine being able to receive retirement income
for 20 or 30 years without paying a penny of federal income taxes on it in the years
you receive it. Now imagine how sizable that income stream might be after decades of
compounding and equity investment for that IRA. 4
Many of us can find more money to save, today and tomorrow. Sometimes the
saving possibilities are right in front of us. Other times, they may come to us in the
future because of present-day financial decisions. We can potentially realize some
savings by changes in our financial behavior or our choice of investing vehicles,
without resorting to austerity.

Eric Pasquini & Jessica Buck @ Belco Retirement & Investment Services may be
reached at 717-720-6220.
(“Save Money” continued on page 9)

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