Debunking commonly known varieties of IRAs

According to a recent survey "retirement trends" from fidelity 96 percent of Americans know that the current contribution limit for an individual retirement account with some rates as low as $1,000 save for retirement. The reality is that for fiscal year 2005, IRA contribution limits to increase $4,000-up to 3,000 US US dollar in 2004.

When it comes to know the facts about retirement, misperceptions can lead to missed opportunities. Today's workers will face rising health care costs when you retire, and declining annuities and a higher cost of living. This is, why it is important to save as much as possible, and as early as possible, like accounts of IRAs in tax beneficiaries.

Know the facts can help to dispel common myths that can keep some investors make the smart move by saving to an IRA.

* Myth # 1: my 401 (k) savings, that should be enough.

Almost one-third of Americans in their prime savings years think opened an IRA account have your 401 (k)-Ersparnisse for retirement, which will be sufficient retirement according to trends survey. Fidelity estimates but that pensioners about income easily need 80 to 100 percent of their retirement to life. Using an IRA now complement workplace programs can help the investors who make sure that your savings will continue to grow and the load on the entire retirement.

* Myth # 2: I have to come at once with thousands of dollars to open an IRA.

For the four not IRA owners of respondents say that you can't afford the initial investment required to open an IRA, ways to save more for retirement can be daunting. But without an initial lump sum is as easy as setting up automatic monthly payments by a fidelity SimpleStart IRA.

* Myth # 3: IRAs are for older people with lots of money to save.

The truth is, that younger investors could most benefit by start early to save, because you have time on your side. Almost two-thirds of young adults started, save for retirement before age 30, according to the retirement trends survey. This is good news; one of the best ways is to store, starting as early as possible to prepare for the future.