IRA

I find the financial industry to be riddled with terminology designed to confuse the general population. With acronyms that no one can explain, multiple terms all meaning the same thing, and names that appear to be pulled from thin air, it can seem like the financial world is speaking a totally different language.

The other day while I was driving, I thought about a recent report I read concerning Americans and their IRAs. According to the TIAA-CREF annual survey on individual retirement accounts and Americans’ savings habits, only 8 percent responded that making contributions to their IRA is a priority with their retirement savings. This is probably because the #1 motivation for saving money relates to short-term expenses—like housing, appliances or a car—rather than saving for retirement.