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If you’re already saving for retirement, well done. Seriously, being consistent about putting money to the side takes discipline and consideration. But are you stashing your hard-earned cash in the right accounts for your financial situation?

There are many tax-advantage retirement accounts. If you have access to an employer-sponsored 401(k) plan, for example, you contribute pre-tax dollars, and lower your taxable income. That’s a win. Your employer might also offer to match your contributions up to a certain limit. Every year, the IRS sets maximum limits for how much you may contribute. In 2023, it was $22,500 , and next year it will be $23,000 .

Not all employers can offer 401(k) plans, and depending on the work you do, you might have access to a different kind of plan, such as 403(b), or profit-sharing plans.

And there are other ways to save, too, including cash-value life insurance plans, annuities, and IRAs. Complementing your retirement savings with different accounts might give you peace of mind as you plan for your future.

What’s an IRA and How Can It Help You Save for Retirement?

An IRA, or individual retirement account, is another way to save for retirement. Even though the IRS sets limits for how much you can contribute each year ($6,500 in 2023), you can grow the money in your account by investing it. Plus, you often also get tax breaks.

IRAs are available to anyone who earns income. And even if you’re a non-income earning spouse, you can still open a specific type of account.

The two most common types of IRAs are traditional and Roth IRAs. They’re different in the way they are taxed, with traditional IRAs being funded with pre-tax dollars, and Roth IRAs not tax deductible upon contribution, but tax-free in retirement.

You can fund your account with cash from your savings, set up regular monthly contributions, or get started with a tax refund to get the ball rolling. Importantly, if you change jobs but still have a 401(k) plan with your prior employer, you can rollover your plan into an IRA account.

Another nifty thing about IRAs: You can make your annual 2023 contributions until the unextended federal tax-filing deadline (aka April 18th) in 2024.

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SoFi Invest® offers traditional and Roth IRAs. Sign up and get started today.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
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SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser.
​​Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer to sell, solicitation to buy or a pre-qualification of any loan product offered by SoFi Lending Corp and/or its affiliates.
SoFi doesn’t provide tax or legal advice. Individual circumstances are unique. Consult with a qualified tax advisor or attorney about your specific needs.

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In many cases, financial health starts with creating a budget. You might not even be saving up for anything in particular, but there is good reason to know where your money is coming from, and where it’s going. How else do you know if you’re living within your means, and in accordance with your goals?

Creating a budget is one thing, but sticking to it is a whole other pair of shoes. That’s why it’s important to find a method that suits you and your lifestyle.

Successful budgeting also means being realistic about other ‘wants’ you typically spend money on, such as the hairdresser, a gym membership, or going out for dinner with friends. These expenditures may be just as much part of your budget as your housing costs.

Once you have an idea of your spending patterns, you can tackle your savings. That’s easier done with a goal in mind. For example, are you building your rainy day fund, saving for a vacation, or putting away funds for retirement.

Your Budgeting Psychology

Psychology is a big part of budgeting.

For one, the word itself is uncomfortable for some. Living on a budget might make you feel like you’re not quite keeping up with friends, relatives, colleagues. But there’s another way to look at it. A budget simply means tracking your money: What comes in, and what goes out. There’s nothing wrong with that, and everyone should do it.

At times, you may be saving up for a big expense, and shift your spending pattern accordingly. When you’re operating like business as usual, perhaps you put away the same amount every month to shore up a longer-term nest egg.

Whatever the case, making your financial choices work for you is key. For some that’s taking a certain dollar amount out of every paycheck before you even start to budget. For other’s, it’s putting all unused funds at the end of the month into a high-yield savings account. Yet others find success putting cash into envelopes (and then in a safe place).

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Don’t be afraid to try and find out what works for you. SoFi can help get started with your budget — and even better, it’s free!

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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The world of investing is vast, and, at times, complicated.

Part of leveling up your investing game is understanding what’s out there, and how it may fit with your portfolio, and risk tolerance. Or not! That’s right, investing is just as much about knowing what isn’t right for you.

One investment type that may leave you intimidated is options. So let’s break it down: An option is a financial instrument tied to an underlying asset. They are a type of derivative, named for their relation to their underlying assets that determine their value.

In practice it may look like this: Instead of buying a stock outright, an options contract allows the buyer to potentially profit from price changes in that stock without actually owning it.

You can also use options to protect existing positions you have. For example, if you own a stock that has risen in value, and want to protect your gains, you may buy an option to sell it at a specific price. That way, if the value of your stock falls further, you have locked in a sale price ahead of time.

That’s pretty nifty, but options also come with more risk than more “regular” investments, as they can result in steep losses. Learn more about options trading for beginners here.

Why do People Trade Options?

Watch the video, where financial educator Ro$$ Mac shares 4 reasons why investors might consider trading options. Whether investors are looking for flexibility or income, he breaks down why options may help as part of an overall investing and financial strategy.

Interested in options? SoFi’s trading platform offers access to options from the mobile app or the web. Head to your SoFi Invest account to get started.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Like SoFi’s content? Follow On the Money by SoFi on MSN.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser.
​​Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer to sell, solicitation to buy or a pre-qualification of any loan product offered by SoFi Lending Corp and/or its affiliates.
SoFi doesn’t provide tax or legal advice. Individual circumstances are unique. Consult with a qualified tax advisor or attorney about your specific needs.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included. Offer ends 12/31/23.

U.S. stocks ended 2023 near record highs, but can the positive sentiment continue?

U.S. stocks ended 2023 near record highs, but can the positive sentiment continue?