Young adults in America between the ages of 18 and 29 years expect that they will retire at 63. However, statistics show that the average US citizen retired at 66 years old. Shortage of finances to fund retirement may be one of the reasons for this delay among retirees. For example, a recent study revealed that 20% of the people filing for bankruptcy in the United States are 55 years or older. Another study in 2015 also showed that ballooning medical expenses were responsible for 62% of these personal bankruptcies. Avoiding these outcomes is possible if you start investing in an Individual Retirement Account (IRA) today. Here are the Top 4 Reasons to Have an IRA.

1.  An IRA Account Helps You Save Your Money
The average income for an individual in the US stood at $26,964 in 2008. The median income for a typical household in the US was $61,372 in 2016. That means Americans are doing well as compared to global averages where the median household income is $9,733. Unfortunately, Americans are not saving as much money for their retirement as they should. For example, did you know that the savings rate in the US in 2017 stood at 2.4%? In 1960, it was at 10.4%. Having an IRA helps you save your money. Your savings will multiply quickly because this account uses a compounded growth model to calculate your interest. 

2.  An IRA Account Limits Investment Taxes
Dividends and capital gains in the stock market are subject to immediate taxation. The more money you earn in this area, then the more you pay taxes to the government. You will move into a higher tax bracket than you currently are if your earnings improve constantly. Going for an IRA account is better than investing in volatile markets. For example, the government does not tax your IRA account unless you withdraw from it. That means the taxes due on it in the future might be significantly lower than they are today if taxation levels reduce. It is worth noting that deductions to an IRA account are tax-deductible, which reduces the tax burden on this investment as well.

3.  IRA Accounts Have Protections at State Level
Investors lose loads of money when unscrupulous people ran misuse their money or run away with it. For example, investors lost more than $17.3 billion in the Bernie Madoff scandal in 2008. This scandal is a constant reminder that investing in risk-averse investments is an excellent idea. For example, several states have laws on their books that protect IRA accounts. Some of these laws focus on damage and creditor claims. Invest in a financial instrument for retirement that has the backing of state laws. Remember, banking on social security as your only ticket to retirement is a bad idea. For example, the average monthly payout for social security in 2016 was less than $1,400.

4.  IRA Accounts Are Simplified Investments
It takes a bit of training and schooling for someone to invest in the stock market and become a professional at it. The same goes for brick & mortar investments such as real estate property. Consequently, many people shy away from these investments. However, IRA accounts are simple to understand. They are planning tools for your retirement and they will earn you a compounded rate of interest over a particular period. These are basic concepts that anyone can understand so anyone with a source of income can invest in an IRA. IRAs are affordable investments as well. For example, you can start with as little as $100 in some cases and then top up $25 or $50 each month. Open an account today.