Paul Brunst is reaching a very significant plateau in his life. Paul Brunst is approaching his mid-forties, and you have to start thinking about retirement when you are in this age group. Many people are under the impression that Social Security will be enough to cover their needs when they become eligible for their benefits. In fact, this is not the case for most individuals. Social Security benefits are quite modest, so if you want to retire in comfort, you have to plan ahead effectively so that you have resources to supplement your government retirement benefits.
Since Paul Brunst is a Denver police officer, he can qualify for a retirement pension, and this is a very significant perk. If you do not have a pension plan at your place of employment, or if you want to supplement your future pension income, you could contribute into an individual retirement account. There are two different types of individual retirement accounts that are widely utilized: Roth individual retirement accounts, and traditional IRAs.
Taxation is the biggest difference between the two types of accounts. With a traditional individual retirement account, you make contributions into the account before you pay taxes on the earnings. Because of this arrangement, distributions that you take from the account are subject to regular income taxes. Roth individual retirement accounts work in the reverse manner. You make deposits with after-tax income, and the future distributions are not subject to taxation. People like Paul Brunst who will be receiving pensions have an advantage, but most people can enjoy their golden years to the fullest if they execute a well constructed retirement plan.