You may have heard the term “retirement savings” mentioned a lot lately.
But there are still lots of things you can do to make sure your retirement savings are as flexible and as safe as possible.
Set aside money for a rainy day, emergency fund or emergency savings account.
Some people want to save as much as they can, while others may only have a limited amount to fall back on.
In these situations, you may want to set aside money from your rainy day or emergency fund.
You could set up a rainy-day or emergency-savings account for a year, for example, or for up to a year and a half.
Another option is to set up an automatic savings account, which automatically generates interest-free payments, according to the National Association of Insurance Commissioners.
In addition, you can create an emergency fund that automatically deposits the money into your 401(k), SEP or IRA, if you decide you need to. 2.
Invest in a mutual fund.
If you’re a worker, retiree or individual who wants to save for your retirement, you might be tempted to go with a traditional 401(m), 403(b), 457(b) or SIMPLE IRA.
These are often referred to as investment vehicles because they typically offer tax-free distributions and are also available to most workers and retirees.
In many cases, they offer the best investment opportunities for a range of investors.
But you might also be better off using a traditional IRA.
And if you have access to a Roth IRA, you’ll be able to take advantage of its lower costs and tax-advantaged investments, which may not be as attractive to the average worker.
Start a savings account with an employer.
In retirement, your employer is your primary source of income, and if you want to invest in a savings vehicle, you need a way to do so without incurring a significant tax penalty.
You may also want to start a savings fund with a broker.
But if you’re working in an occupation that requires a lot of manual labor, it may be worth starting with an online retirement brokerage.
A brokerage will typically set up savings accounts and investment accounts, including 401(b).
If you need help setting up an account, call 800-401-SAFE (800-401, SAVES A RETIREE) or visit the online retirement marketplace.
Set up an employer-directed retirement plan.
If your employer doesn’t have a retirement savings plan, you could consider setting one up yourself.
Many employers have online plans that allow them to provide employees with a range and flexibility in how they invest.
Many offer options that include employer match or match-saved contributions, tax-deductible contributions, contributions to a qualified savings plan or employee contribution plans.
Employers that offer these plans include companies like General Electric, Boeing, Caterpillar, General Motors, Walmart and others.
If these companies don’t offer any retirement savings plans, check out the information on 401(d) plans or 529 plans.
Consider a Roth.
Roth accounts offer you the same retirement savings opportunities as an IRA or 401(p), but they’re taxed as ordinary income and taxed at a lower rate than most other types of savings.
They also offer the highest investment returns and the lowest tax penalties.
While the returns aren’t quite as impressive as traditional savings accounts, they’re a good option for people who want to diversify their investments and may also be able, in the future, to take a tax-deferred investment and defer taxes.
You can also start your own Roth account if you choose.
The best part is that, unlike an IRA, it’s tax-protected, and you can choose the investment that best fits your needs.
In this case, you’d probably be better served by an IRA.
Invest a portion of your income in a qualified IRA.
While it may seem counterintuitive, a qualified retirement savings account is a way for you to save some of your retirement money for retirement.
With a qualified account, you’re not only able to withdraw money from the account from your paycheck or paycheck-to-paycheck as needed, but you can also defer taxes from your tax returns and even set aside a portion to pay off your student loans.
These kinds of accounts are called qualified annuities and they’re popular among workers.
But it’s important to note that qualified annuity investments are not tax-preferred, meaning you may have to pay income taxes when the money you put in is withdrawn from your account.
For example, if your income exceeds $200,000 and you withdraw $30,000 from your qualified annuitant account, that $30 will be taxed at 15 percent.
The same applies if you withdraw a portion (say, $2,000) from your annuity plan.
It’s also important to understand that while you can set up your qualified account and withdraw from it tax-efficiently, you have to make some investment decisions