Which Retirement Savings Options Are Right for You?

Saving For Retirement

When you take time to lay the right foundation for retirement planning, you can enjoy the peace of mind in knowing that your retirement accounts are being funded and your balances are growing on a regular basis. One aspect of laying the right foundation for retirement planning involves finding the best accounts for your needs. From checking accounts and savings accounts to retirement accounts like a 401(k) or an IRA, you need to analyze the options carefully to determine which options are best for you.

Saving For Retirement
Checking and Savings Accounts

As a first step, it is important to review your current savings and checking accounts. Consider factors like their annual cost to you through the various fees your bank charges as well as the amount of interest that you receive on your funds. Also, consider if you have access to more advanced banking features like online management services, account analysis tools and other similar services. The best accounts for your needs will have very low fees, reasonable interest rates to promote growth of your funds and the best account management features. After all, if you are paying more money in fees than your bank is offering you in interest, you are losing money by using your bank’s services. This is not the ideal situation for retirement planning.

Retirement Accounts

If your employer offers a retirement account with an employer-matching program, you need to take advantage of that program. The employer-matching program essentially provides you with free money that can be used to fund your retirement account. You simply need to sign up for the program to watch your retirement account balance grow. If your employer does not offer this type of program, take time to review the different types of IRAs available to you, and begin making contributions to your private retirement account. Be sure to monitor your accounts regularly to ensure that your investments are growing as desired.

In order to fully fund your retirement and live a comfortable lifestyle in your later years, it is necessary to be proactive about your finances in each of these areas. It is not enough to simply save a few dollars regularly into a high-interest saving account or aim to meet the average retirement savings contributions. Likewise, it may not be enough to simply contribute the minimum amount to an IRA. You should make an effort to review each of these areas of your finances carefully to lay the framework for solid savings, investing and growth of assets.