How Do I Actually Save For Retirement?

Question

Accepted Answer

If you work for a company that offers a 401(k) or pension plan, your employer may have automatically enrolled you when you started working. In that case, not only is your money going to work for you, but the taxes on that money are deferred.

You might also be able to sign up for an auto-increase plan, which allows your plan administrator to increase your contributions over time. Since your salary is likely to rise as you continue working, this is a painless way to boost your savings.

Most experts recommend contributing at least enough to your retirement plan to qualify for the matched contributions from your employer. Otherwise, you're literally passing up free money.

If you're freelancing or otherwise self-employed, you can set money aside in one of several retirement plans for entrepreneurs. including a SEP-IRA and a solo 401(k). And just about anyone can open an IRA, even if you're also saving in a 401(k).

Yes, You Should Invest for Retirement Now

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