Saving for Retirement: 3 Steps for Beginners


April 5, 2024

1:32 min

Man and Woman looking over documents

Saving for retirement is one of the most important steps anyone will take in life.

Joshua Terrell, MBA
Financial Advisor, LPL

Saving for retirement is one of the most important steps anyone will take in life. No matter your age, it is never too early or late to begin saving; however, it can be stressful to know where to start. If you follow these 3 simple steps, you will be on your way toward reaching your financial goals by the time retirement comes around.

  1. Check with your employer to see if they have an employer sponsored plan

    Employer sponsored plans such as a 401K and 403(b) can be extremely beneficial for contributors. In most cases, the company will match the amount that the worker is putting in and invest that money into various funds that will hopefully grow as you work there. Plus, when the employee decides to either leave that job or retire, they typically have a few options. They can roll the funds into an IRA, leave the money in their former employer’s plan (if permitted), roll over the assets to their new employer’s plan (if permitted and available), or cash out the account value.
  2. Open up an IRA

    IRAs are extremely beneficial due to their tax advantages. Having these tax advantages will be useful as you reallocate your money as you get closer to retirement age. The downside to these is they do have limited liquidity, so make sure you understand the pros and cons before you start contributing.
  3. Talk to your local Central Investment Advisors Financial Advisor

    While you can start saving for retirement on your own, it is still important to discuss your financial options with a Financial Advisor. Our advisors are able to sit down with you and help you better understand your retirement account options, as well as work with you to create financial plans that are best suited to help you to pursue your goals.

Category: Retirement

Investing involves risk, including the potential loss of principal. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

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