how should i start saving for retirement?

Question

what are some good ideas for my retirement?
what have some people done and how did their retirement work out for them? any ideas will be very helpful
thank you

Answer 1

I'm working on building my retirement savings right now.

The first big tip is to have your retirement savings automatically deducted from your paycheck. If your employer has a 401k or other retirement plan, sign up and have them starting deducting money and investing it. Shoot for 10% of your salary. If you can't swing that, try 5%, and then bump it up the next raise you get. The later in life you start, the more you need to invest to catch up.

Second tip. A simple yet powerful investment option is the Targeted Mutual fund. They are also called Lifecycle funds. They are targeted to people by when they retire and have names like Target 2030 or whatever year you expect to retire. These funds are great in that they invest your money in a wide variety of investments that are appropriate in risk for your age group. They would have large, medium, small cap and foreign stocks, gov't and corporate bonds, Real Estate investments (REITS), and sometimes even more exotic investments all built in. As you get closer to your retirement, they gradually move your investments to a less risky mixture.

Answer 2

Know where your money goes first and foremost. I never started smoking because I figured I could buy 3 new cars in my (longer) lifetime, as an example. How many nights do you eat out or treat friends? You don't have to be a hermit or live like a pauper but you have to realize the power and importance of money. Knowledge is where you start.

Then look at where you can put your money. Put something away every payday right away. A credit union usually has better rates (loans and savings) than a bank. Join one. A regular savings account hardly pays any interest. As you build up funds, put them into the CU's money market accounts if they have them. Get CDs for yourself to build up some capital. Buy them on a regular basis (ladder your savings) so some are maturing every so often in case you need liquidity. An IRA is a must - I suspect you are quite young so a Roth IRA is probably best. If your employer has a 401k plan that matches contributions, it is free money. You have to sock some away there. Long term you invest in the stock market. But unjless you want to devote a lot of time and energy to it, you may want to look into no-load mutual funds so your invests are diversified.

To build equity in my house, I always put 50% of any annual pay increases on my mortgage payment. Paid the house off in 14 years. Real estate is getting harder to get into; avoid deals that tie up all your funds (max house payment and car payment = no money left for fun or investing).

Answer 3

Use retirement accounts, like a 401(k) or IRA. Arrange for automatic transfers of money from your paycheck into the account. Diversify your investments--lifecycle or target date retirement funds are an easy way to do this. Put more money into regular taxable accounts (don't just max out your retirement accounts).

Answer 4

if your company has a 401k plan that is the best way to start out, becuase they will match a percentage of what you pay into it... also you can try www.sharebuilder.com..

Answer 5

buy a house. that will be your retirement after you paid it in full.

Answer 6

-Contribute to a Roth IRA. If you can't, then contribute to a Traditional IRA.

-Learn how to invest in stocks.

-Diversify your assets.

-Don't spend too much.

-Don't have credit card debt.

Answer 7

Do you already have a house and a used hybrid car?