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In: Accounting

Conduct a web search for the topic 'saving for your retirement'. Similar to budgeting, you should...

Conduct a web search for the topic 'saving for your retirement'. Similar to budgeting, you should find a variety of websites with information concerning how to save for retirement. Please provide three strategies to develop YOUR plan for retirement.  Cite your sources.

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Expert Solution

Simplify how you invest and allocate your money with a diversified portfolio personalized to fit your unique retirement goals and risk tolerance.

Target date funds are a convenient choice for investors who don’t feel comfortable or don’t have the time to put together their own investment mix. Each fund is made up of a broad range of investments, which can help reduce volatility when saving for retirement.
Investment professionals adjust the investment mix to become more conservative as the target retirement date approaches, which can help provide a measure of protection from market declines. In addition, investors may want to look for an actively managed target date series that continues to manage the funds into retirement

Target Date Funds: Target date funds are a convenient choice for investors who want professional management for their retirement assets in a single easy-to-use investment.
Target date funds offer portfolios specifically designed to help participants move closer to attaining their retirement goals of appreciation, income and preservation. You don’t have to manage the portfolio yourself, since each target date fund is a group of mutual funds combined into one fund that serves as a single diversified investment.

Experienced investment professionals adjust the fund’s holdings over time as the fund approaches its target date. All target date funds reduce the amount of equity over time. Target date funds emphasize growth when retirement is years away and become increasingly income-oriented as the target date approaches. Review target date fund pros and cons to see if this type of investment might work for you.

Target date funds are a convenient choice for investors who don’t feel comfortable or don’t have the time to put together their own investment mix. Each fund is made up of a broad range of investments, which can help reduce volatility when saving for retirement.
Investment professionals adjust the investment mix to become more conservative as the target retirement date approaches, which can help provide a measure of protection from market declines. In addition, investors may want to look for an actively managed target date series that continues to manage the funds into retirement

“If you have a very long time horizon, you can afford to take some risk for higher growth,” Hu says. But you want to select “the right funds so your exposure to the market is diversified.”

More people are being offered something that they may not recognize as a retirement savings tool: a health savings account. These accounts are usually coupled with a high-deductible health insurance policy. Not only can choosing such a plan lower the cost of your insurance plan, it can help boost your retirement plans along with your 401(k) or IRA.

The Internal Revenue Service has its own set of complex rules for each type of retirement account. Some tax breaks are only available to people at certain income levels, so what we’re giving you here is a basic overview. Check with the IRS website or your accountant for details.

All these accounts allow your money to grow tax-free. You pay tax when you withdraw the money, except for Roth IRAs, where no tax is due at withdrawal. If you withdraw money before you reach age 59 1/2, in most cases you will have to pay a 10 percent penalty in addition to regular income tax.


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