Don’t Have a 401 (k)? There Are Still Options
April 30, 2019 |
Even if you just graduated and started your first full time job, you’ve probably already started thinking about retirement. That time of life where you can do anything, go anywhere, and have no responsibilities.
Assuming you can afford it.
Some companies offer 401(k) retirement plans to help you make the most of your golden years, but not every business is so generous. If you don’t have a 401(k), how are you going to save for the dream retired life? How will you avoid your around-the-world adventures? How will you pay for your boat?
While having a 401(k) is important, it isn’t mandatory, and there are plenty of other ways to save money for retirement. Here are some of our favorites (that don’t involve mattresses or treasure maps).
Open a Traditional or Roth IRA
IRAs are perfect for retirement because, well, that’s what they do and what they stand for: Individual Retirement Account. These accounts help you save for the future by allowing you to add money each year but penalize you for taking the money out early (unless it is for one of three very specific reasons).
Open a Normal Investment Account
Who says you have to save your retirement money in a retirement account? If you know anything about investing — and even if you don’t — a regular ol’ investment account might be the perfect option for you to increase your savings. And with a little thing called the internet, investing has never been easier. It’s a little more risky than your typical retirement plan, but if you play it right, it could pay off big.
Open an HSA
We know, we know. A Health Savings Account (HSA) doesn’t exactly seem like the most logical way to save for retirement. But you’d be surprised at how much an HSA account could save you in the future. Sadly, even the healthiest of us will have to visit the doctors more frequently in our retired years, and saving now could ease a lot of your medical financial burdens in the future. Since you can contribute up to a set amount each year, you can grow it from now until forever.
Open a CD
No, not a compact disc. A Certificate of Deposit (CD) is an account that takes your money for a set amount of time and returns it to you with interest once that time has expired. If you’ve got some savings that you don’t plan on needing for the near future and can let it earn interest for you, this is a great way to go. Plus, the longer the term of your CD, the more it can earn.
Need help finding the right retirement plan for you? Dime can help.