How should I fund my retirement?
I do not have an employer sponsered retirement plan. They do not offer a 401(k) or anything similar. Now that I'm 30, something just clicked and it scared me to death. I need to begin saving for retirement on my own but I'm uncertain as to what direction I should head. Of course at some point in my career, I may change employers and may in fact have a 401(k) but for now, it's entirely up to me to fund my own retirement. Can someone please direct me toward some information or otherwise offer a helpful suggestion?
Public Comments
- Roth IRA
- I have a lot of experinece with my job also. First go to a brokerage like Schwab, E-trade, etc. Open up a Brokerage account, you can also open up a simple IRA at a bank and have the money from your paycheck automatically if you have direct deposit go into the IRA. You can have items like CD's, money market, etc. For a brokerage account at age 30, you start off simnple, try 10-15% savings, have it automatically taken out and put into the IRA automatically FIRST thing each paycheck. In a brokerage account split your money over REIT's, Vanguard Muni Bonds, Vanguard Stock Index, Fixed Income, Large Cap, Small Cap, Money Market accounts, etc. My best advice is put most of your money in VERY conservative funds. Do NOT expect to get 12% earnings, be happy with 5-6% a year. Over the next few years try and get a job with a hospital or state or city or federal government or lkarge corporation, they have excellent pension benefits where they give you another 5% on top of what you save
- (UK based answer) The most flexible option is a personal pension which your employer can add to and you can take from job to job - consult a Financial Adviser for the full ins and outs. Bear in mind that a pension fund is used to buy an "annuity" which pays a regular amount as long as you live, but when you die there is no money to leave to your family. Property is a good one - buy houses and rent them. An income for life and assets that increase in value all the time. When you die you have something you can leave to your family, though you will have to take into account Inheritance Tax (your family will have to pay the taxman 40% of your estate BEFORE they get their hands on your property). Depends on how you see your life progressing and how you want to pay your taxes ...
- It's possible that your company is okay despite not having a retirement plan, but I'd take a long hard look at the total compensation package that they are providing. You can easily set up your own retirement fund called an IRA (individual retirement account) and split your investments into a multitude of categories that wouldn't be available through most company sponsored plans. Meet with a financial planner to figure out the best path forward. He will be able to sit with you and examine your current situation and future financial path... People will throw all kinds of terms at you with no real understanding of financial planning - this is one of the most important financial descisions of your life - starting out on Y!A is not bad, but you need to do research for yourself, and speak to qualified professionals. The good news is that if you are 30, then you are still ahead of where most people have that oh-crap moment.
- www.ira.com explains IRAs, both conventional and Roth. www.investopedia.com and money.aol.com offer advice about retirement planning.
- Jonathan Pond, usually via public television telethons provides a "Smart Planner" assessment where you fill out an in-depth questionnaire about your financial life and they create a plan tailored specifically to you, with no other biases. Suzeorman.com is an excellent website as well. She's excellent and favors Roth IRA's. Search on her name and Roth IRA and you can learn a lot. FYI...I had a cousin who became a planner, but he was tied to certain types of investments and insurance, and I've done much better on my own. My point here is unless there is someone reputable you can trust, I would recommend trying to get an independent assessment and learn as much as you can, because no one will care as much about you, your money or your financial well-being as you do.
- There are many, many resources out there for you. When I first started investing and funding my retirement I did lots of research. I read the Motley Fools Guide to Investing because it was in clear and simple language that I could understand. Most investment/retirement firms have free information regarding getting started in investing and saving for retirement on their websites. Fidelity and Charles Schwab are two. There are a number of "retirement calculators" out there as well that can help you in determining how much to put aside each month. Maybe you will buy a 3 dollar stock that bounds to 700 like Google so you can retire early. Good luck to you.
- I hope this information able to help to to figure out: Step by Step Retirement Planning Guide http://www.stock-investment-made-easy.com/retirement-planning.html Be Strong! ;)
