Long term planning

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You would like to begin (or increase) your savings for retirement. What types of retirement plans (401 ks, IRA, 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.

Please help! : ( candy

My personal situation is not the same as yours, since I am already retired. I found both 401Ks and IRAs to be useful, and used them both as much as I could. After I retired with a vested company pension , I cashed out the pension and rolled it over it to an IRA created with the 401K, to manage myself after retirement. Roth IRAs were not available when I was working, but I converted my regular (after tax) IRA to a Roth later. Roth IRAs an excellent way to provide a tax-free income stream for the rest of your life.

If your employer offers a 401k with some amount of matching funds, you should contribute enough to maximize the company contribution. If you can, contribute to the 401K up to the legal limit for tax deferal eligibility. It's a good idea to learn to live with less than your maximum available takehome pay now, so you can have a comfortable retirement later.

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