According to the United States Department of Labor, creating and sticking to a plan to save money is the most important step in preparing for retirement. Successful retirement requires planning, commitment and stable finances.Know More
According to the United States Department of Labor, retirees need at least 70 percent of their pre-retirement income to maintain their standard of living after they stop working. Putting a set amount of money into a savings account each month is an effective way to start saving for retirement. The Department of Labor strongly advises workers to leave their retirement savings untouched until they retire; withdrawing the money early can cause a loss of interest or tax benefits.
Money can be put into an Individual Retirement Account, or IRA, which can provide an easy way to save for retirement. If an employer has a retirement savings plan, such as a 401(k) plan, an employee may want to sign up and contribute to it as much as possible. Compound interest and tax deferrals can cause money to accumulate over time. Each plan is different, so a potential retiree may ask his employer for details before signing up. An employee may also ask about an employer's pension plan. A retiree also has access to Social Security benefits, which are on average 40 percent of what was he earned before retiring.Learn more about Financial Planning
A 414h retirement plan is a tax-deferred government retirement plan. It is a money purchase initiative in which government employers mandate employee contributions, which are then “picked-up” by the employer to be formally characterized as “employer contributions.”Full Answer >
Fidelity provides education to customers about retirement planning and IRA basics as well as providing several calculators for specific retirement planning issues. Fidelity customers can combine retirement accounts and 401(K) plans into a traditional tax-deferred IRA, rollover IRA or Roth IRA.Full Answer >
A 457 retirement plan is a retirement savings account offered to government employees and some employees of nonprofit organizations, states CNN Money. Advantages over other retirement plans include no penalties for early withdrawals and enhanced catch-up contribution options, reports Kiplinger.Full Answer >
The Thrift Savings Plan is a retirement savings and investment plan designed for federal employees and members of the uniformed services, explains TSP.gov. It is a contribution plan, meaning the available retirement money is dependent upon the funds accumulated during the years as an employee.Full Answer >