I would like to increase my savings for retirement. What type of savings and retirement plan is best for a 31 year old single person? What are the benefits of one plan over another?
2006-08-11 08:56:37 · 12 answers · asked by sunnyday77 1 in Business & Finance ➔ Personal Finance
First and foremost take full advantage of any employer match on a 401(k). If you have maxed out your employer match, put additional savings into a Roth IRA. This should be your best bet at your age and grows tax-free. As for investments, stick mostly to index funds. They are well diversified and have very low fees. Allocate about 10% in a bond fund or 2 and another 10% in an international fund for further diversication. Steer clear of risky stuff like company stock. This should lay down a nice foundation for reasonable long-term growth.
2006-08-11 09:29:20 · answer #1 · answered by monger187 4 · 0⤊ 0⤋
Golden rule is to save at least 10% of your take home pay. Best bet is to start on an IRA as soon as you can. The best resource I have found was to partner up with a financial planner. Fees for their services are always negotiable. It would be better if a planner sits down with you and recommend steps to take for your future. After that, it is up to you whether you want to follow the plan or not. Good luck to you and hope you have a great retirement in the future.
2006-08-11 09:53:35 · answer #2 · answered by JJ 3 · 0⤊ 0⤋
Roth IRA account - the contributions are not tax deductable (like a traditional IRA) but your earning are tax free. You can max out at $4000 a year and catch up at about 50 years old (they let you contribute more money to make up for lost time). This is one of the best investment strategies, besides any 401k plan your job may offer.
2006-08-11 09:08:59 · answer #3 · answered by SAL 3 · 0⤊ 0⤋
keep all of your bill stubs and reciepts for one month in a plastic baggie. do no longer substitute your spending conduct. on the top of the month, evaluation your reciepts and bill stubs. the position are your unnessasary purchases? Do you devour out lots? try making your lunch at abode and bringing it to artwork. some human beings can keep as a lot as $30 a week= $ninety+ money a month with the help of merely making their lunch and bringing it in! what number impulse purchases do you're making? attempt to imagine about the way you reside in the present day particularly reliable without it. positioned little away at a time, it will boost...attempt to imagine in case you're taking money out of your little money stash, you'll kill your money tree. when you've $500 loose and clean, make investments it right into a CD at a monetary corporation. call around the banks for the suited pastime fee (they pays you to carry your money) 6 month ones i encounter are not too committed. besides the undeniable fact that the longer you committ to saving, the more effective acceptable your pastime fee. Plus you're able to have the intrest fee compounded. Sound complicated? Ask your monetary corporation's representative to bypass over CD's slowly with you. they're very prepared that can help you you realize.
2016-11-24 20:33:47 · answer #4 · answered by ? 4 · 0⤊ 0⤋
401K at work if offered and a Roth Ira. The 401K has the benefit of your employer contributing and the Roth has the benefit of having every contribution be tax free when it comes time for you to draw upon it at retirement age. The tax is applied to any earnings it makes.
2006-08-11 09:05:20 · answer #5 · answered by mergirl 4 · 0⤊ 0⤋
at 31 any savings is good savings. standard 7-10% of your income should do just fine. i'd also try a higher yield investment as you are still young enough to afford a little risk.
2006-08-11 09:00:33 · answer #6 · answered by sparkloom 3 · 0⤊ 0⤋
Max out your Roth IRA
Then put at least 10% into a 401 K
If you company has any matching 401 K it doesn't count it's just gravy. Put at least 10% of your pre-tax income into it.
2006-08-11 10:52:57 · answer #7 · answered by BOB W 3 · 0⤊ 0⤋
If you haven't already bought property, do so. If you have, investigate the possiblities of buying another to let.
I tried the stock market years ago and lost a lot even buying blue chips but there are those who still swear by it and profit.
2006-08-11 09:05:16 · answer #8 · answered by Anonymous · 0⤊ 1⤋
If you want a good pension save 15% of your salary(government recommendation).
Put it into your employer's pension scheme as he will put in as much himself and you will be getting tax rebate. Quite a bargain. .
2006-08-11 13:41:35 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Buy savings bonds. Guranteed 100% return on your investment.
2006-08-11 10:26:59 · answer #10 · answered by Sharingan 6 · 0⤊ 1⤋