Planning for Your Financial Future

Planning for Your Financial Future Once you've established a foundation for your finances, it's time to plan for the long-term. Taking The Steps to Legally Work Belia Peña, an immigration attorney based in Texas, advises that petitions are the initial step towards legally working in the United States. Once the petition is submitted, an immigrant can apply for a work permit. It is important to apply for a Social Security number (SSN) while seeking a work permit, as this number is essential for accumulating Social Security work credits. These credits are crucial for accessing Social Security benefits during retirement or in the event of a disability. Social Security Benefits Social Security is a public benefit program that provides cash benefits to disabled and retired workers. During a person's working years, a Social Security tax is deducted from their paychecks by the federal government. The amount of benefits received during retirement or disability is based on the total amount of money earned and paid in Social Security tax. Immigrants and first-generation Americans should consider obtaining a Social Security number as a top priority to start earning work credits towards their future Social Security benefits, which can be an essential source of income during retirement or disability. Establishing Retirement Accounts Many American workers contribute to retirement accounts, in addition to paying Social Security taxes. When money is deposited into a retirement account, it is invested in various assets such as stocks, bonds, mutual funds, and exchange-traded funds. By investing the money instead of simply saving it, the retirement savings can potentially grow over time, leading to a more comfortable retirement. Employer-sponsored accounts and individual retirement accounts (IRAs) are the two primary types of retirement accounts. An employer-sponsored retirement account is one that employees contribute to through their employer, while an IRA can be opened at a brokerage firm or bank and is managed by the individual. Different retirement plans have different features, so it's important to research to find one that matches your long-term goals.