Contribute to your company's retirement plan, 401k, 403b, deferred
compensation, or other retirement plan when available.
If self-employed, you can contribute to a SEP-IRA, Simple-IRA,
Keogh, Roth IRA, or regular IRA. (See retirement calculator).
Most everyone can contribute to a Roth IRA or Individual
Retirement Account (IRA), on their own. Many companies
and non-profit organizations will match or partially match
an employee's contribution. Also, most retirement contributions
are taken from your gross income before taxes; this amounts
to a large savings.
Over time, with matching funds from your employer, regular
contributions, tax-deductible and tax-deferred retirement
accounts, you can build a substantial retirement account,
but only if you contribute! So start contributing now, and
consider making your maximum allowable contribution. Considering
the built-in tax savings and employer matching funds, you
can actually lose money if you don't contribute to your company
retirement plan, or a voluntary self-employment or small
business retirement plan.
Get an estimate of your social security benefits at retirement
by contacting the department of social security at www.ssa.gov.
The social security administration can mail you a copy of
your past earnings and estimated social security at retirement.
By getting this report you can verify that you were given
credit for every year you paid social security tax. Social
Security is not considered a total retirement plan. Instead
it is a supplemental retirement plan, to be used in conjunction
with a company retirement plan or individual retirement plan.
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