| It's probably occurred to you that you should save | | | | hopefully earn you returns, which when combined |
| for retirement, but for those without any idea of | | | | with the 401k match, should help you avoid inflation |
| how they'd like to go about it, here's an overview of | | | | and ensure that you save enough for retirement. |
| some popular options. | | | | An IRA, or independent retirement account, is similar |
| The five dollars you have today will not be able to | | | | to a 401k except that you set it up on your own. |
| buy as much for you in twenty years as it does | | | | You can go to a bank, credit union, or other financial |
| today. This is called inflation. The way we get around | | | | institution and set one up on your own. You have a |
| this issue in saving for retirement is saving our money | | | | lot more control over this type of account. There is |
| in a way that the five dollars we put away for the | | | | no employer match, but you have a lot more |
| future now will grow and become the amount that | | | | freedom in choosing what kinds of investments |
| we need to buy the same things the five dollar bill | | | | you're interested in pursuing. |
| could get us today. | | | | Another popular option, down a very different route, |
| There are three popular ways of doing this, they | | | | is to invest in real estate. This is an investment you |
| include 401k accounts, IRAs, and purchasing real | | | | can get some use out of, buying a vacation home, or |
| estate. | | | | using it as a rental property and earning money that |
| A 401k is an employer sponsored savings account. | | | | way over the years. The idea here being that when |
| Your employer will usually offer a small match for | | | | you go to retire you can sell the property you own |
| your contributions, typically up to a certain | | | | and then have cash for your retirement. |
| percentage of your income, around 1-3%. This is | | | | When making a retirement plan it's often best to |
| very helpful savings bonus that is unique to this type | | | | consider a mix of these types of options to hedge |
| of account. Your savings will then be invested in a | | | | your bets a little and have a variety of investments |
| plan you choose that involves stocks, bonds, money | | | | working for you. This gives you the best of all worlds |
| market accounts, and various other kinds of | | | | for saving for retirement. |
| investments. Over the years your account will | | | | |