Saving For Your Retirement

Have you begun saving for your retirement? Depending on your age, you may be close to retirement or years away, but either way, having a retirement fund will be the difference between

living comfortably or scrambling to support yourself financially.

Start Now

No matter your age, starting a retirement fund now is the best step towards a brighter future. Generally speaking, the earlier

you start, the better off you will be.

Know Your Options

When you decide to save for retirement, you have a couple of options to build your future retirement fund:

• Contribute to a traditional 401(k)

• Contribute to a Roth 401(k)

• Invest in the stock market

• Put money in a high-yield savings account

Traditional 401(k)

This retirement plan allows you to put a certain amount of money into a special account. Sometimes employers will contribute to the

account which will help it grow. When this money is put into the account, it has special tax incentives like lowering your taxable

yearly earnings. Traditionally, contributions will enter the 401(k) account tax-free and remain untaxed until it is withdrawn but there

are some government stipulations.

Roth 401(k)

A Roth 401(k) is slightly similar to a traditional 401(k). However, when monies are contributed into a Roth 401(k) account, the

contributions are immediately taxed at the current tax rate. Another difference is that the contributions are not taxed when they are withdrawn later down the road, and of course, there are certain

government stipulations.

Investing On The Stock Market

In addition to retirement 401(k) plans, some may benefit from investing on the stock market. Although, the stock market fluctuates, it's a risk you must be willing to take. However, there are stock market

advisors and coaches that can guide you and help you understand stocks like Mark Matson and his team at Matson Money. But individual

strategies aren't guarantees of proven performances so the market could be in favor of the investor or go the other way.

High-Yielding Saving Accounts

Opting to put money in a high-yield savings account gives you more freedom to withdrawal your funds early (Example: in case of

emergencies) without steep penalties like those found in 401(k) retirement accounts. But, depending on the financial institution, you may have minimum balances to obtain regularly and other rules. And of course, there are tax stipulations that must be accounted for like

reporting the gained interest on the account.

What Is Right For You?

While there are different options to save for retirement, it all depends on how you want to save for it. The first step is deciding and the next is

choosing the best route for a comfortable future.