Question

The 3 things your IRA's value depends on are how much you contribute, how much your investments earn, and how many years your money has had the chance to compound. Knowing that, what can you do to maximize your retirement savings?

Answer 1

IRA refers to the individual retirement account. It is considered as an investing tool which gives its users a tax-advantage. People use this tool to earmark their funds for their retirement savings.

The three things on which the IRA's value depends on are -

1. Contribution,
2. Earning capacity of the investments,
3. Time period for the money to compound.

In order to maximize the retirement savings it would be prudent to start saving or contributing as early as possible. When the earnings are at their peak it would be in benefit to save handsomely. The funds should be invested in the tools which give higher rate of returns. The time, contribution amount and the rate of return of the IRA  is directly proportional to the retirement savings.