401(k)s & IRAs For Dummies

Chapter 21

Ten + Two Ways to Save For Retirement

IN THIS CHAPTER

Making savings automatic

Developing good saving and spending habits

Finding opportunities to save

Originally, the title of this chapter was “Ten Easy Ways to Save for Retirement,” but some of these tips require a little time and dedication. But all of them can help you get to your retirement fund goals.

Join an Employer-Based Retirement Plan

Working for an employer that gives you the opportunity to save for retirement is way better than having to do this on your own. Having a retirement savings plan shows that your employer cares about its employees, and this consideration often promotes a good working environment.

Saving becomes the first priority when you join a 401(k) plan. Having a portion of your pay contributed each pay period is the easiest way to save. Otherwise, saving is usually the last thing on your mind. Often, it never happens because there isn’t anything left from your paycheck at the end of the month. Getting a matching employer contribution is a big bonus.

Set Up Automatic Withdrawals

You must save for retirement on your own when your employer doesn’t offer a plan. An IRA is a great way to do ...