You would like to begin (or increase) your savings for retirement?

What types of retirement plans (401ks, IRAs, etc.) might be best for your personal situation? Be sure to explain the plan you are interested in and why this is best for you.

Public Comments

1. You don't provide any information about yourself, so I'll list the ideas I have for young (twenty-something) American investors. You'll want to at least Google or Wiki these to figure out if they're right for you. (1) Your company's 401(k) or 403(b) retirement plan. Do it, as soon as you can -- it's almost always a no-brainer. Find a way to contribute at least as much as is required to get the full amount of your company's match (if it matches your contributions). Don't invest your funds in company stock, though; pick a simple stock fund that has a low operating expense ratio (such as an S&P 500 Index Fund, a fund that invests in the 500 largest US companies and takes very little of your investment as an expense ratio). (2) Roth IRA. You can invest a few thousand dollars per year and if you don't pay much in taxes now but expect to do much better later in life, this might be the spot for the money you have after you've met the minimum for your company match in the 401(k) or 403(b). Many people will want to fill up their 401(k) or 403(b) completely before starting their Roth because the former uses pre-tax dollars and the latter uses after-tax dollars. In your 20s, invest in stocks -- they'll beat bonds (and just about everything else) over 30-40 years. (3) Employee stock purchase plan, if they give you a discount and you feel it's a strong company. You shouldn't buy stock in the company you work for any other way, and you shouldn't have more than 10% of your net worth in company stock. (4) Low-cost funds through Vanguard or Fidelity. These will be after-tax investments that *aren't* necessarily long-term -- you don't have to wait until your 59.5 or older to sell them. Stick to funds like S&P 500 Index, Total Stock Market Index, and Real Estate Investment Trust Index funds. The operating expense ratios should be lower than 0.20%, per year -- you want your money working for you, not going to the fund company. Finally, independent of these options, is a home. You should almost certainly want to own your own place, even if it's just a condo or townhouse. If you're buying company stock, you can sell that to make your first down payment (I wouldn't delay your 401(k) in order to make a down payment, though). Good luck, Doug