Saving for your retirement
* Employers can allow employees to make after-tax "Roth" contributions to the employer's 401(k) or 403(b) plan. Qualified distributions of these contributions and related earnings are tax free.
** Individuals age 50 and over may make additional $1,000 IRA catch-up contributions.
Comments (7)
Linda Chambers
12:00pm on Aug 24, 2011
All I really want is the Agreement form for deducting funds from my pay pre-tax for my personal contribution. nkenlin424@verizon.netFlag as innappropriate
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SMILEY
8:39pm on Oct 04, 2010
im only 12 and wanna know how to save some money so i can buy some of my things...what should I do?!!Flag as innappropriate
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Elizabeth
5:20pm on Jan 14, 2011
This is quite simplistic. The first question should be - does your employer match contributions or allow you to buy stock at a discounted price? If the answer to both is no, then I think you''d be better off funding a Roth IRA (if possible) and then investing in the employer plan. Lacking some other benefit (like matching), an IRA that you control is more flexible and easily portable than an employer plan.Flag as innappropriate
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Matt
5:03pm on Apr 25, 2011
SMILEY,A really important part of saving is knowing why. First, establish what you want to save for (i.e., a new bike). Figure out how much it costs. And determine how soon you want it. Once you have this information, you can figure out how much you need to save to reach that goal. An example would be that you want a new bike that costs $100. And let''s say you make $200 a month with a paper route. By saving 10% ($20 in this case) of that $100 each month (putting it into a piggy bank, under your mattress, or into a bank account) it would take 5 months to save for the new bike. The important thing is staying committed to saving it. Put the $20 into your piggy bank before you spend a dime of that paper route money. And don''t take any money from that stash in the piggy bank, otherwise you are taking away from your goal to purchase a bike.
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zamfam
9:31pm on May 01, 2011
When I was your age, my mother taught me to use ''the envelope system''. You write on each envelope what that money is for (ie. a new bike for yourself, extra clothes, music/DVDs, presents for others, church/charity, etc.) Anytime you earn or are given some money, you split between the envelopes and then don''t use it for anything else. Of course, keep a little in your wallet for miscellaneous. But you''ll be surprised how fast you achieve your savings goals -especially if you''re willing to work to earn it! Good luck!Flag as innappropriate
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Carol
4:06pm on Aug 15, 2011
OK, so what if the BILLS eat up ALL my money?? I don''t have enough left over at the end of the month to even put gas in my car, so I started riding a bike - that then got stolen! I''m pushing 50 and I have NOTHING saved! My work doesn''t have fancy benefits, not even health coverage, so an IRA or anything is totally out of the question. What can I do??Flag as innappropriate
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Auditor
4:50pm on Aug 15, 2011
Carol, I think a good start for you is to develop a budget and spending plan. Either you are living beyond your means or you aren''t tracking your spending. Often times eating out or something as simple as going to the convenience store vs discount grocery store can make a huge difference. Write out all your bills and other spending then determine where you can cut back. I''ve been where you are, and you would be amazed at how much more you can do with your money when you have full control and knowledge of where it goes. Good luck!Flag as innappropriate
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