Many milestones in life take some preparation; graduating from university, buying a house, having children, but one of the milestones that need the most preparation is retirement. Most people work hard all their life so that they can retire at some point in the future, but to be able to retire, you need to ensure that you will be able to support yourself financially. That is why it is better to start preparing for retirement earlier rather than later.
The best way to prepare for retirement is to set up a retirement account. The sooner you do this, the longer you will have between then and retirement, so the more you can save and acquire. It will also mean that you will have a better chance of actually meeting the needs of your post-retirement spending habits. Your post-retirement spending habits may differ depending on whether you have paid off your mortgage, have any unexpected medical expenses that you will have to pay for or have any other big plans for your retirement years.
Some retirement accounts are set up through your employer, but others you can set up yourself. Individual retirement accounts are great for people who want to set up their own retirement account because they are self-employed or want to supplement their employer-sponsored account.
The infographic below takes you through the two main types of IRA; Roth and Traditional. It highlights the differences so that you can easily pick the kind of account that will work best for you.
Infographic Design By Accuplan