Retirement plans may be going the way of the dinosaur but the younger generation of today should be aware of the fact that saving more for retirement is the wisest thing to do. Listed below are the simplest, no-nonsense and easy-to-understand retirement savings plans and accounts that one can choose:
403(b)/401(k) offered by employer: This is the best and easiest way for you to begin investing for retirement. Employee contributions go through payroll deduction, and employers match employee contributions. If you decide to quit your job, make sure that you roll over the account into the 401(k) plan of your new company or into your own IRA. A 403(b) is an option for employees of non-profits, teachers, etc.
Solo 401(k): For sole proprietors, the best thing to do is to set up an individual 401(k) account and make contributions as both the employer and employee up to $54,000($60,000 for individuals above the age of 60 years).
SEP (Simplified Employee Pension) IRA: This SEP IRA is usually used and employed by proprietors and owners of small-sized businesses or those who are self-employed such as freelancers. Employers can contribute either $54,000 or an amount which is up to 25% percent of their income, in 2017, whichever amount is lesser. SEP IRAs are easier to set up as compared to a solo 401(k) account. One should remember that if one has employees, then the employer must make employee contributions for those who meet specific requirements.
Simple IRA: A Simple IRA retirement plan allows companies with less number of employees (lesser than 100) to arrange for IRAs which involve lesser headache and paperwork. In a Simple IRA, an employer should either make unmatched contributions or match employee contributions, with the limits being up to $12,500 in 2017, with an additional $3,000 allowed for people above the age of 50.
IRA: IRAs are the big kahuna of retirement investment plans. You could contribute up to $5,500 a year to an IRA, which grows tax-free ($6,500 if you’re over the age of 50). You could set up an IRA at a brokerage firm or a bank to hold a motley of investments such as cash, bonds, MFs and stocks which are earmarked as retirement savings. If you’re not covered by a retirement plan at work such as a 401(k), you get the advantage of a full deduction from your income, no matter how much it is (exceptions are if you file jointly with a spouse who has a work retirement plan or if you are covered by a 401(k) and your earnings exceed $71,000).
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.