Gone are the days when the working class in the country could get the Social Security or an employee pension plan to cover the costs incurred in their later years. Today, planning for retirement has become imperative. There are numerous options out there for individuals to save better to live comfortably later in life.
The thumb rule is not sticking to a single plan or putting all your eggs in one basket:
Pensions
All you need to do is stay in the job long enough to qualify for pension, retire and collect the money which the employer contributes and which are professionally managed. However, pension plans are most common for government/municipal workers, rather than those in private ones, and mostly aren’t adjusted for cost-of-living. So, you may need to supplement this plan with another one.
Defined Contribution Plans
According to most financial advisors, these are some of the best retirement plans because they are offered by employers who match a certain portion of the employees’ contributions. It requires very little effort since employee contributions are deducted from their paycheck. Since contributions are almost an equal match, it’s close to 100% return on your money, and with plans such as the 401k or the 403b, people are in control of their future.
Roth IRAs
Roth IRAs are retirement accounts funded with taxed dollars where individuals enjoy the advantages of tax-free withdrawal and growth. One can even combine Roth IRAs with other plans such as a 401k to churn out a well-balanced plan that allows them to make both before-tax and after-tax contributions. However, Roth IRA has contribution and eligibility limits that depend on an individual’s tax filing status and modified adjusted gross income.
Traditional IRAs
Traditional IRAs have the same contribution limits as Roth IRAs, but without the eligibility and income restrictions. These plans work best for people who have less time left to retire, since one can enjoy the benefits of tax-deferred growth and tax-deductible contributions.
SEP IRAs
This is one of the best retirement plan choices for the self-employed such as sole proprietors or freelancers. The contribution is huge, cost is lower and the plan is easy to administer and manage. Good income combined with very less tax deductions amounts to a large amount off your tax bill, and a lesser income means no contribution.
Social Security
Social Security is said to benefit 39% of the older American populace’s income, with 9 out of 10 people over 65 years of age receiving Social Security. Despite the hype and hoopla surrounding it, Social Security is still relevant and important, with timing being everything.
Real Estate
If you haven’t saved enough or at all, real estate is a great option. However, one must be warned that with higher returns comes a greater risk.
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.