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subject: 5 Ways To Save For Retirement So You Have Enough Money [print this page]


There are a lot of different ways to save for retirement so you have enough money but the five ways below are a good start to building a detailed savings plan that you'll be able to retire with.

1 -- When you come into a lump sum of money, for instance from a tax return or an inheritance, always put a portion of it aside for a retirement account. Do as much as you feel you can afford, but as a rule at least ten percent, if not twenty. This will help make up for slower saving years and always keep your investments moving forward.

2 -- Most employers offer 401ks these days, don't pass these up! These accounts have a lot of advantages for your retirement savings. You decide how much you want to save from each paycheck and it gets put into your account for you--easy! You pick an investment plan that your employer has laid out for you, they usually give you several plan options varying by level of risk.

3 -- Take advantage of your 401k match. If your employer offers a contribution match up to a percentage of your income, make sure you invest at least up to that point. That match is free money you won't be seeing elsewhere, don't let it pass you by.

4 -- Invest in an IRA (independent retirement account), and consider using a Roth, especially if you've already got a traditional 401k. IRAs are a lot like 401ks, except with an IRA you have a lot more control. You can set up one of these accounts at most financial companies. The difference between a Roth and a traditional IRA is largely in how you will handle your taxes, both now and in retirement.

5 -- Plan out how much you need, and how much you need to save each year. Don't forget to add in the returns on your investments, it'll make the figure seem much more reachable. Making a plan is key to any successful retirement savings.

by: Jennifer Quilter
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