How to Save for Retirement

6 steps 30 min Intermediate

Learn how to save for retirement with our detailed step-by-step guide. Follow our easy instructions to get it done right.

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Step-by-Step Instructions

1

Step 1: Determine Retirement Savings Goal

Calculate how much you need based on desired retirement age, lifestyle, and life expectancy.

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Retirement Planning Book

Guide to calculating retirement needs and strategies

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Retirement Calculator Tool

Online calculator subscription for projections

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2

Step 2: Maximize Employer 401(k) Match

Contribute at least enough to get full employer match - this is free money toward retirement.

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3

Step 3: Open IRA Account

Set up Traditional or Roth IRA to save additional tax-advantaged money beyond 401(k).

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IRA Setup Guide

Book on choosing and opening the right IRA

$16.99
4

Step 4: Automate Regular Contributions

Set up automatic transfers from paycheck or bank account so saving happens without thinking.

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5

Step 5: Increase Savings Rate Annually

Aim to save 15% of gross income; increase contribution by 1% each year or with raises.

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Personal Finance Software

Quicken or Personal Capital for tracking net worth

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6

Step 6: Diversify Investments

Use target-date funds or diversified portfolio of stocks and bonds appropriate for your age.

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Investment Guide for Beginners

Book on retirement investing basics

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Financial Advisor Consultation

One-time retirement planning session

$300