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How to Plan Ahead for Your Retirement

2036 is the landmark year in which Social Security funds will be exhausted. So for future generations, this means there have to be other options to plan for retirement. While a lot of people don’t like the idea of increasing the amount of money that comes out of their checks for future retirement, but there are plenty of options for saving for retirement that won’t break the bank today. If you haven’t already, check out these options for saving for retirement.

1. 401(k) and Pension

Many government agencies and successful companies offer a 401(k) or Pension plan for their employees, which are generally approached in three ways. A company can provide full funding to a plan as long as the employee works for the company for a particular length of time. Another option is for you to contribute fully to your plan, and the employer actively searches for the best sources so you can get the greatest return for your contributions. The third is a matching program a lot of employers do; you simply add what you desire to your plan and the employer will match a certain percentage of your contributions. Even if your employer uses the first option, it is always a good idea to contribute money to the 401(k) plan yourself, as that will help it accrue much more interest over time.

2. Roth IRA

Because a Roth IRA relies solely on your contributions, much like a savings account, it is the best deal for you. This is because the income you place in a Roth IRA is already taxed, so when it gets distributed upon your retirement, those funds will not be taxed. On top of that, Roth IRA accounts are insured by the federal government for up to $100,000.

You can easily contribute money from your paycheck or money you make on the side to your Roth IRA account. A lot of people can find easy side work to do for small amounts of money that can be held in a Roth IRA. Consider offering your talents or hobbies as a service, or take paid online surveys at Though the money is not comparable to your income, it is nice to have that little extra to put away.

3. Stock Market

The stock market is a risky venture, but is an opportunity for everyone to get integrated into the American economy. Investing in the right stocks is a guaranteed way to get you on the fastest route to earning money, especially in a slowly recovering economy. Even if you are on a budget, you can still invest money in penny stocks or other low-priced stocks on the market.

4. Equity

Not many people are aware that they can make money simply by being consistent with their mortgage payments for an extended period of time. Paying off your mortgage on time each month will build up your home’s equity, which you can later bank on. Once you reach the age of retirement, your children will most likely have moved out, leaving you with more extra space than you need. Because your home has built up equity, you can sell your home for a better price than what you paid, and move into a smaller home with a suitable amount of space.

Planning for your retirement should not be stressful, as there are plenty of easily accessible opportunities to save and invest to ensure that you have a steady and healthy retirement income.

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