Want to rescue your retirement?
- Start saving, keep saving, and stick to your goals. If you’re already saving, whether for retirement or another goal, congratulations! If you’re not saving, start now! You can start small, but start. The sooner you start saving, the more time your money has to grow. Devise a strategy and stick to it.
- Contribute to your employer’s retirement saving plan. If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute all you can. Make sure to contribute enough to capture your employer’s matching contribution, if available. Over time, compound interest and tax deferrals can make a big difference in the amount you may potentially accumulate.
- Put money into an Individual Retirement Account. When you open an IRA, you have two options: a traditional IRA or Roth IRA. The tax treatment of your contributions and withdrawals will depend on which option you select. You can set up automatic withdrawals from your checking or savings account to be deposited in your IRA. You have until April 15, 2014 to make IRA contributions for the 2013 tax year.
- Don’t touch your retirement savings. If you change jobs, leave your savings invested in your current retirement plan, or roll you funds over to an IRA or your new employer’s plan. If you withdraw your retirement savings now, you’ll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties.