5 Retirement Savings Strategies for 2013
NEW YORK (TheStreet) -- Saving for retirement is an area of personal finance that makes your stomach churn. Saving for something decades away isn't as appealing as setting more short-term goals, in which the results appear sooner.
The two most common types of retirement accounts, the 401(k) and Roth IRA, are undoubtedly essential to any retirement savings plan of action. For this year, the contribution limits for both accounts have been raised by $500, to $17,500 and $5,500, respectively.
Do you need a quick retirement tune-up? We asked personal finance experts to share five direct ways to jumpstart your savings for when you're no longer working:
1. Start with the basicsIf you're working for a company or organization, talk to your human resources department about opening a 401(k), which is where you contribute money now and pay taxes on that money after age 59.5 when you retire. As for the Roth IRA (which is not offered by employers, but can be opened at discount brokerage firms), you are contributing money that you've already paid taxes on. With a 401(k), your employer may contribute money to your account, too. "Maximizing contributions to a 401(k) up to the company matching provision is the first step for any retirement accumulation plan," certified financial planner Damian Rothermel says. Any money your employer matches is essentially "free money."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV