Few financial decisions are as important as retirement. If you want to live comfortably in the golden years of your life, you have to begin planning for them early. There are many ways to save for retirement, and you may want to use a variety of methods to save as much as possible.
1. Get a savings accounts
No matter what age you’re starting to save at, a savings account is a relatively safe option for new savers. You can start saving for retirement as early as your teenage years by putting some of your paychecks into a savings account. You always have the option of moving the money to a more aggressive retirement plan later.
2. Take advantage of a 401k plan
Nowadays, many companies have 401k plans for employees. These plans are hands-off, in that the financial advisor for your company invests your money in different ways depending on when you’re planning on retiring. The big bonus of a 401k, though, comes in the form of employer matches. Many employers match a certain percentage of your income as long as you contribute the same amount to your 401k. For example, a company with 3% matching will put 3% of your pre-tax salary in your 401k as long as you also put in 3% of your salary.
3. Sign up for an IRA or Roth IRA
An IRA or a Roth IRA are both popular choices for retirement funds. You can set up either with a financial advisor. A traditional IRA gives you tax breaks in the year in which you invest money. A Roth IRA allow you to claim tax benefits when you withdraw your money. Different situations call for different types of IRAs, so you may wish to consult with a financial advisor!
Retirement is an important part of your life, so don’t shortchange yourself by skipping out on saving now.
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