Two of the most notable ways to save for retirement include the 401(k) investment plan and the IRA. If possible, individuals should use both. The 401(K) offers tax-deductible contributions and taxes on interest are relatively low compared with regular savings accounts. Many large corporations also offer employees incentives to contribute to their 401(K) plans by matching contributions dollar for dollar. Employees should take full advantage of their employees offer to match 401(K) contributions. In addition to the 401(K) employees can also open an IRA account with a financial institution of their choice. Self-employed individuals or those whose jobs do not afford them matched 401(K) contributions would especially benefit from the advantages offered by an IRA, including tax-deferred growth and income tax deductions. The actual features of the IRA vary from plan to plan and advisors at financial institutions can help people plan for their retirement according to their ability and need. Individuals with the ability...
Health problems can be costly and individuals can and should do whatever they can to prevent health problems through lifestyle and dietary choices in order to avoid accruing unnecessary medical bills. Furthermore, retirement doesn't necessarily mean stagnation. Individuals who keep their mind and body active through intermittent or part-time employment not only earn extra money to supplement their investments but also keep themselves healthy. If necessary, the individual might also have to make lifestyle choices to reduce overhead, such as moving to a less expensive neighborhood or home. In any case, retirement planning is highly individual, based on one's ability to save money and prepare for financial security.
