Whats the fastest way to establish a retirement savings plan for a 36 year old with no savings?

Answer 1

Hi...Too bad you didn't ask this question 10 years ago, but be that as it may, you will need to weigh risk vs. returns very carefully. Aggressive risk investment can potentially gain you far more in the short run, but low risk investments are usually long term. But either way you look at it you will need to invest for profit....nothing else has a quick enough return for you to reach a comfortable retirement income. Automatic savings can be set up with your bank so a portion of you paycheck is automatically put into a savings account, particularly good for a person with little self control regarding spending and saving.

Answer 2

I think many folks are telling you to start up an IRA. I am a financial planner and I do not agree.

If you have no savings -- I would start by accumulating some funds in a savings account. You need to do that before you start an IRA.

The other consideration is any debt that you might have that needs to be paid down. Do that before you start saving or putting money into these other plans. Why be accumulating interest at a rate less than what you are paying for credit card debt or loans of other kinds?

If you start an IRA and have no other savings whatsoever, then as soon as you run into an issue where you need to get at some money, you will have no choice but to dip into the IRA -- which would result in penalties and the money wothdrawn would be taxed as ordinary income. That means you would be paying a penalty to get at your money -- if you were not 59 1/2.

Start by setting up a samll savings account and get a couple of months of your income saved up. You will be creating all kinds of options for yourself to do whatever you want for the rest of your life with investments, etc. If you don't have the savings, almost anything you start will be doomed to fail.

I want this to work for you and see you succeed. Start by getting some small savings accumulated first. If you have the availability of a 401-k plan at work, get to where you are maxing that out too -- that is free money that your employer will give you as a match.

Then start the IRA or buy some mutual funds or whatever.

Good luck.

Answer 3

I would suggest the following:

1) If you don't already have one, setup a savings account to serve as your emergency fund. 3-6 months of living expenses should be in this account. Also, make sure you are earning at least 4% in this account.

2) If your company has a 401k plan, start investing in that. If possible, max it out.

3) You can also open a Roth IRA (provided your compensation doesn't exceed the compensation limit). The max contribution for years 2006 and 2007 is $4000. You can fund your Roth with a CD, stocks, bonds, mutual funds, etc.

Answer 4

the fastest way would be an IRA. You can deposit up to $4000 a year without taxes until you retire. Also a 401k if your employer offers it is a great way to save without noticing a big hit to your paycheck. Get started now, you've got lots of time to save before retirement and you should do well. Good luck

Answer 5

You can start by saving & then once you have 2-3 months of salary saved-put extra money into A Roth IRA-you can do that at most any bank.

Answer 6

Start maxing out your retirement accounts ($15k - 401k, $4k - IRA) and save as much as possible in a taxable account. Basically, you just have to decide to do it. Start saving and you'll get there.

I'd suggest reading both books on the "Must Read" list on the link below as well as reading Start Late, Finish Rich. They will get you started right.

Good luck!

Answer 7

The easiest thing to do is go to your bank and ask them to setup an IRA or Roth IRA for you. You can then make contributions upto $4,000 each year.