Best retirement saving plans


best retirement saving plans

Best retirement saving plans

Best retirement saving plans, At some point in time, we all need to retire.  However, most of us are concern about our life and financial stability after retirement.  Therefore, we must seriously plan things out, especially our finances. Financial retirement planning is extremely important and the very first step we need to take.  In order to ensure that the lifestyle we’re dreaming of at retirement will become a reality.

Regardless of your age, it is never a wrong time to think about financial planning for retirement.  Let’s get started with the best retirement saving plans. The earlier you begin saving the better your lifestyle will be after retirement.  With more years to invest, you will also have the chance to improve your finances along the way. The longer years your money can grow, the better chance you will have of securing your future.

The Best Retirement Saving Plans to Consider

The very first consideration for your savings plan is where your money will actually go and how long. As a standard strategy, you need to invest in different term investments.  For example, some short, medium, and longer term investments.  Investing in either stocks, mutual funds or bonds. 

These investments are commonly determined by the individual’s’ time horizon. You definitely do not want to find out that you don’t have enough money to cover your retirement needs. You better educate yourself now on how to invest and save the right way.

The following are the best retirement saving plans to consider:

  • Traditional IRA

As of this writing, you can contribute about $5,500 per year to a traditional IRA and $6,500 if you are over 50. Money is said to grow tax-deferred, and not tax until withdrawal.  The hope is that your savings will grow bigger due to no taxes.  In addition, your tax rate will be lower at retirement.  Another benefit is that you will get a deduction from your taxes.  However, if your job has a retirement plan, you may not be able to deduct your contributions from your taxable income.  This is the case, if you’re earning $71,000 per year for a single person and $118,000 for a married couple. In case you don’t have access to a retirement plan at work, then you get full credit for the deduction.  Unless you file jointly with your spouse who has a retirement plan at work.

  • Roth IRA

A Roth IRA is an individual retirement account that is funded with after-taxed dollars. You can actually enjoy all the benefits of the tax free growth and withdrawals. In other words, you don’t get any tax credit deductions, but you’ll never pay any taxes on your savings.  Therefore, your investments can grow larger and not be subject to taxes even when you withdraw.  This is one of the best retirement savings plan around.  A great way for individuals to achieve financial stability after retirement. Roth IRA is also ideal for younger retirement savers regardless if they got access to sponsored plans.

A Roth IRA is an option that most people can consider. The contribution limits and eligibility depend on a person’s status of tax filing and adjusted modified gross income. As of this writing, the limits are the same as the traditional IRA.  That is $5500 per year, and $6500 if you are over 50 years old.

There may be different retirement saving plans available today.  However, the IRA is still one of the best retirement saving plans to help secure your future.  The key is to start saving as early as you can, and take advantage of any available retirement plans at work.

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17 thoughts on “Best retirement saving plans

  1. Brian Patterson says:

    This is a very timely post for my wife and I. We’re not quite ready to retire, but it’s on the horizon. We happen to be meeting with our financial advisor next week. We are becoming more and more keen on understanding where our money is and how it’s doing. I’ll be certain to focus on Traditional IRA and Roth IRA when we meet with him. Thanks for the good information!

    • elderlysafetyproducts says:

      Hi Brian,
      Its never too late to start saving for retirement, but of the course the earlier the better. Make sure you understand your risk profile and what type of returns you need for retirement. I would be wary of annuities since they have high commissions and we are a in low interest rate market for the foreseeable future.

  2. Alex says:

    Hi,
    I still think the best investment is in some kind of property, but you need to save some money in advance first. And using the strategies you mentioned might be a good way to achieve that, if you start early.

    PS: Thanks for your comment on my website 😉

    • elderlysafetyproducts says:

      Hi Alex,
      Real estate can be a good investment, however like any good investment, you need good due diligence. In addition, diversify is the key to long term success in investment. Starting early is always the wisest choice.

  3. Jennifer says:

    Good information – thank you! I wish I had started saving for retirement many years earlier than I did. But when you are getting started in the workforce sometimes it’s hard to put money aside, and you feel you have all the time in the world.

    The truth is if you start putting aside just a few dollars a week, over the course of many years it can become a large sum of money.

    I would advise anyone who has a 401K plan at work to take advantage of it beginning in their 20’s to really reap the benefits, especially if the employer offers matching funds.

    • elderlysafetyproducts says:

      Hi Jennifer,
      I know what you mean, I wish I started investing for my retirement earlier too. The problem is that when you are in your 20’s, retirement seems so far away and your focus is on the present. You have the mentality that you have so much time and will invest more later on in life when you are more successful. However, those early years could be huge when you add up all the enough time for your money to grow. Cheers.

  4. Summerly says:

    Some good information here. I know its never to early to start to save and now I’m thinking its about time I start. I have just general savings account which I contribute money to, but the interest rate isn’t great, I think I need to look into other savings account so I can make the most of the time I have now until I retire. Thanks for the info!

    • elderlysafetyproducts says:

      Hi Summerly,
      Just keep in mind, general saving accounts are taxable, while retirements are at least tax deferred. This makes a big difference in the growth and accumulation of savings due to the power of compounding returns. Cheers.

  5. Leo says:

    Hi, the plans you suggest above definitely sounds good, however I tend to mix in safe investment decisions to try to grow my investment nest egg. I would look at bonds, blue chip stocks with stable dividend payouts and gold in general. If I have more money, I would look at properties for rental yields or real estate trust for the yearly dividend yields. There is tons of ways out there to build a retirement fund. No doubt the IRA you mentioned are one of the most popular avenue with tons of benefits.

    Best Regards

    • elderlysafetyproducts says:

      Hi Leo,
      Thanks for sharing your retirement ideas. You seem quite knowledgeable about investing, the key is diversity and understanding your time horizon. With an IRA or most retirement accounts, you can invest in bonds and large cap equities that pay dividends. Cheers.

    • elderlysafetyproducts says:

      Hi Amanda,
      I’m glad to hear that you are saving for your future. Some people don’t realized until its too late to plan for retirement. You should invest up to the limit every year for your IRAs, cheers.

  6. Jeff says:

    I’m only 32, but just wondering if I should start looking at some kind of retirement savings, or if there is some good advice on what to go with. Everyone keeps saying that retirement age will be 70 by the time I retire…so I’m wondering if there is even a point.

    Good job simplifying the definitions of each of these retirement plans

    • elderlysafetyproducts says:

      Hi Jeff,
      The sooner you start investing for retirement, the better. Retirement may seem like a long time away, but that’s why its important to take advantage of the compounding effect of interest. Besides, time really flies and you don’t want to be unprepared.

  7. Nicole says:

    This information is so important. It is surprising how many people do not think about this far enough in advance and then when the time comes they are completely unprepared or living not as well off as they could be. Thank you for sharing this information!

    • elderlysafetyproducts says:

      Hi Nicole,
      Yes, we are a bunch of people that live now and don’t really consider the future. We will be old before we know it. Retirement is always ore effective the sooner you start. Let’s save for the future today, cheers.

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