• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to footer

Before Header

Call us today for help!  (631) 265-0599
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Mark S. Eghrari & Associates PLLC

Long Island Elder Law & Estate Planning

  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
  • Resources
    • Client Resources
      • Definitions
      • Docubank
      • Elder Law Resources
        • Brentwood Elder Law
        • Central Islip Elder Law
        • Commack Elder Law
        • Hauppage Elder Law
        • Smithtown Elder Law
      • Estate Planning Resources
        • Estate Planning Check Up
        • Estate and Gift Tax Figures
        • Estate Planning Techniques
        • Estate Planning Worksheet
        • FREE Estate Planning Seminars
        • Long Island Estate Planning Resources
      • New York Medicaid Resources
        • Medicaid Planning Worksheet
      • Nursing Home Resources
      • Probate Resources
        • Brentwood Probate
        • Central Islip Probate
        • Commack Probate
        • Hauppage Probate
        • Smithtown Probate
        • Suffolk County Probate Resources & Checklist
      • Presentations
      • Retirement Planning Checklist
      • Trust Administration Resources
    • Elder Law Reports
    • Frequently Asked Questions
      • Business Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Incapacity Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Reports
  • Estate Planning
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses
    • Incapacity Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Areas We Serve
    • Long Island
    • Nassau County
      • Oyster Bay
    • Suffolk County
      • Brentwood
      • Central Islip
      • Commack
      • Hauppauge
      • Smithtown
  • Blog
  • Contact Us

Mobile Menu

  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
  • Resources
    • Client Resources
      • Definitions
      • Docubank
      • Elder Law Resources
        • Brentwood Elder Law
        • Central Islip Elder Law
        • Commack Elder Law
        • Hauppage Elder Law
        • Smithtown Elder Law
      • Estate Planning Resources
        • Estate Planning Check Up
        • Estate and Gift Tax Figures
        • Estate Planning Techniques
        • Estate Planning Worksheet
        • FREE Estate Planning Seminars
        • Long Island Estate Planning Resources
      • New York Medicaid Resources
        • Medicaid Planning Worksheet
      • Nursing Home Resources
      • Probate Resources
        • Brentwood Probate
        • Central Islip Probate
        • Commack Probate
        • Hauppage Probate
        • Smithtown Probate
        • Suffolk County Probate Resources & Checklist
      • Presentations
      • Retirement Planning Checklist
      • Trust Administration Resources
    • Elder Law Reports
    • Frequently Asked Questions
      • Business Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Incapacity Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Reports
  • Estate Planning
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses
    • Incapacity Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Areas We Serve
    • Long Island
    • Nassau County
      • Oyster Bay
    • Suffolk County
      • Brentwood
      • Central Islip
      • Commack
      • Hauppauge
      • Smithtown
  • Blog
  • Contact Us

Can I Invest in an IRA if I’m Young?

A Smithtown elder law attorney can offer help with making your retirement plan. It is important not to wait until late in your career to begin working with a retirement planning lawyer. Waiting will make it much harder for you to accomplish your retirement planning goals. You will also lose out on the opportunity to take advantage of tax breaks which are available each year during the course of your career. Smithtown elder Law attorney

Mark S. Eghrari & Associates PLLC helps you to make smart choices regarding your retirement investing. We work with people of all ages, including young people who want to ensure that they are on the right path to retirement so they can be financially secure when they are ready to leave the workforce. To find out more about how our legal team can assist you with all of your retirement planning needs, give us a call today.

Can Young People Invest in an IRA?

When you are making your retirement plans, you may wonder whether you can or should invest in an IRA if you are young and just starting out your career. The answer is that young people definitely should invest in IRAs as long as they are eligible to do so.

Most young people are eligible to make annual investments in an IRA. If your income is high and you have a spouse with a workplace retirement plan, or if your income is high and you have a retirement plan at work, you may lose the ability to make tax-deductible IRA investments. However, most young people do not meet the income threshold that would price them out of being able to invest in an IRA. In fact, one of the key reasons why you may wish to invest in an IRA when you are young is that your income will likely increase over the course of your career and the chances are greater that you’ll lose your IRA tax deduction later on in your career when you are making more.

Investing in an IRA when you’re young is a good idea because you’re allowed to invest only a set maximum each year in an IRA and take the tax deduction. As of 2017, the maximum you can invest is $5,500. Each year that you don’t invest in an IRA, you lose the opportunity to take this tax deduction. You cannot make up for it by investing more later, since you don’t get to carry the tax deduction over from the years that you miss.

Maximizing your tax benefits for retirement investing is just one of many reasons why you should start making an investment in an IRA when you are young. Another big reason to invest in an IRA early on in your career is because you can benefit more from compound interest if you invest for a longer period of time. This means that it is possible for you to save a smaller amount each month, but still end up with more money in the end than you would have if you had invested more later. As you earn interest on your investments, the interest earns interest so your money is making you money – this is why compound interest is so powerful.

This Motley Fool article illustrates why it makes a lot of sense to begin investing in an IRA when you are as young as possible. If you start investing in an IRA when you’re 25, you need to save $442.37 per month during the course of your whole career if you want to have $1 million by the age of 65, which is the average retirement age. But, if you wait until you are 45 to invest, you would need to save more than $2,321 monthly to retire at 63 with $1 million. It is much easier to begin investing early and saving a small amount each month than to try to invest a substantial sum every single month when you are older.

Getting Help from A Smithtown Elder Law Attorney

A Smithtown elder law attorney can offer you personalized one-on-one help as you consider the different kinds of tax-advantaged retirement accounts you may be eligible to invest in. We can also assist you in setting savings goals and taking steps to make certain that your assets are protected.

To find out more about the ways in which our legal team can assist you, join us for a free seminar. You can also give us a call at (631) 265-0599 or contact us online at any time to talk with an experienced member of our legal team.

  • Author
  • Recent Posts
Mark S. Eghrari, Estate Planning Attorney
Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.
Latest posts by Mark S. Eghrari, Estate Planning Attorney (see all)
  • Special Needs Planning and Medicaid Recovery - March 21, 2019
  • Have You Considered a Living Trust? - March 12, 2019
  • How Do You Qualify for Medicaid? - March 7, 2019

About Mark S. Eghrari, Estate Planning Attorney

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.

Previous Post: «Hauppauge Trust Attorney Three Reasons Trust Beneficiaries Should Talk with a Hauppauge Trust Attorney
Next Post: How Can I Pass my Business on to My Kids? estate planning lawyer»

Footer

Office Location

Eghrari Law Firm
50 Karl Avenue, Suite 202
Smithtown, NY 11787
Phone: (631) 265-0599
Fax: (631) 265-0754

See Larger Map
Get Directions

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 2:00 PM

Sign Up for Our Newsletter

Sign up to get our free estate planning newsletter for all of our tips and resources

  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Site Footer

Copyright © 2020 American Academy of Estate Planning Attorneys · All Rights Reserved