Best Ways to Save For Retirement

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Planning and saving for retirement early will help secure your golden years. Starting young is the best way to get ahead, but no matter your age, saving for retirement is essential. With so many options available, it can be confusing trying to figure out the best ways to save. With a little help and some quick guidelines, you'll be one your way to building a great retirement.

Instructions

1. Invest your extra money. Income tax returns, holiday bonuses, cash gifts, or inheritance money should be put away toward retirement.

2. Join a credit union if the option is available to you. Credit unions offer better interest rates, better savings plans, and perks for members, including free or low-cost financial planners.

3. Meet with a financial planner. Get your current debt and income on track and organize your investments to benefit you the most with the help of a professional.

4. Look into your Social Security benefits by calling 800-772-1213, but don't count on Social Security to fulfill your retirement needs. Programs like Social Security can change or disappear over time.

5. Pay as much as you can afford into a 401(k), if your employer offers one.

6. Open an IRA or Roth IRA and have funds direct-deposited into it.

7. Pay off your debt. Carrying high interest debt into your retirement years is one way to burn through any money you have saved for retirement. Pay off all loans and credit cards before retirement, and you will extend the life of your savings enormously.

8. Never touch your retirement savings for any reason. In some drastic circumstances, like permanent disability, you may need to break this rule. Consult a financial planner first, though. They can help you understand the pros and cons of your situation and what your best options are.

Resources

• Retirement Calculator
• Find a Financial Planner - National Association of Personal Financial Advisors
• National Save for Retirement Week -- Free Planning Info.