Retirement: Securing Your Future
When it comes to preparing for retirement, savings accounts are an important tool. However, building a diversified investment portfolio composed of stocks, funds, and bonds can help you beat the rate of inflation over time and generate higher returns.
There are a variety of retirement-specific investment accounts, like the 401k, IRA, Roth 401k, and Roth IRA. Your employer may offer one of these retirement accounts as a benefit, or you may open one outside of your workplace. Different types of accounts also differ on how they impact your taxes. Some accounts may lower your current tax obligations, while other types provide tax relief later by allowing your investments to grow tax-free.
By investing for retirement early and regularly, you benefit from compound interest – interest that is earned on both the initial investment amount (known as the principal) as well as past interest earnings. Taking advantage of compound interest allows you to build a larger nest-egg over time.
The following resources can help you learn more about the importance of preparing for retirement and how to begin creating a plan that works best for you.
- Start working toward your financial goals by making a savings pledge.
- Learn how you can start planning and saving for retirement with these helpful tips.
- Retirement accounts vary by how they interact with your taxes, so it’s important to know these accounts can help you meet your financial goals.
- Check out this short video for more tips, resources, and activities to help you plan and set goals for retirement.
- Informed investing is smart investing. It’s important to understand the risks and protections of different types of investment and savings products.
- Calculating the expected return on your investments helps you prepare for the future. With this tool, you can estimate the growth of your nest-egg and see if you’re on-track to reach your goals.
- Preparing for retirement means making sure you have enough saved to cover your expenses and maintain your standard of living. This planning tool helps you estimate how much you’ll need to save for retirement.