What is the best way to save for retirement ?

Public Comments

1. It really depends on your present situation, plans, goals, needs etc etc. My advise is to make (or get yourself made) a personal financial plan which considers all necessary data and from/with that plan distill what would suit you best.
2. First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us. Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay. Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run. Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.
3. Make an appointment to see a licensed professional who can help you with your goals, needs and wants. Asking for this advice on a website is just asking for trouble UNLESS you want to post all of your personal financial information here too. Visit a professional and expect to pay a fee.
4. The first thing to do is to contribute to your company's retirement plan, if they have one. If they match contributions then contribute atleast up to the match. The next thing is an IRA. After you have contributed the limit to both of those if you can still afford to save then start with mutual funds, stock and bond funds.
5. Paying off your primary residence before retirement is an excellent way to save for retirement. Living below your means, and saving a total of 20% of your total income a year in IRA's, 401K's or 403b's are also great ways to save for retirement.