NPR commentator and linguist, Geoff Nunberg discusses
the significance of the term “gig economy” taking hold in current vernacular for a world where “...work will be less secure but lots more exciting. We can make our own schedule and hours, pick the projects that interest us, work from anywhere and try our hands at different trades.”
Embracing freedom and accepting uncertainty let us take advantage of unique, potentially unlimited opportunities to explore and create a new personal economic reality. Yet, as we acknowledge the nature of employment changing, we must rethink our structure for spending, saving, and building for retirement. In a “1099 economy” driven by your resume being a portfolio of diverse projects instead of steady tenure at a few companies, IRAs shine as agile, portable, and adaptable vehicles for securing a future retirement.
Traditional and alternative investments offer a wide scope of investment possibilities for your IRA’s portfolio, but there are other ways of maximizing your saving potential simply by exploring the structure of the IRA itself. From its 2015 article, Forbes
offers “4 Tricks to Get the Most Out of Your IRA”
“Make contributions as early in the year as you can. A year’s worth of tax-advantaged compounding on each annual contribution over the course of your pre-retirement life betters your results dramatically.
Take advantage of the time extension. Many taxpayers don’t realize that there is an extension for previous years’ contributions. You can, for example, until April 15, 2015, to make contributions for the 2014 tax year.
Double your deduction with a non-working spouse’s IRA. Single-income couples can contribute to an IRA for both spouses. Even if only one person has an income for the year, as long as the income is within the limits, you can contribute to IRAs for two people. As valuable as the tax-deferral feature is for both the traditional and the Roth IRA, you are literally throwing money away if you don’t take advantage of these accounts.”
Just as learning and developing new, marketable skills gives you the advantage to adapt to the changing economic reality, continuous education on investment opportunities and the capacity of your IRA gives you an advantage over those who fail to embrace the changing face of retirement.