The earlier you start investing for retirement,
the easier it will be to meet your financial goals.
You can get a head start if you begin investing
when you get your first job. That’s when you qualify to put
money into an
individual
retirement account (IRA).
Or, you may be able to contribute
to a
salary
reduction plan
at work. A salary reduction plan lets you
deposit a percentage of your pretax salary into a tax-deferred
investment account. That means that the money you contribute doesn’t
count as part of your taxable income for the year. You decide
how to invest the money you contribute to the plan among the fixed
income,
equity,
or
money
market funds
that your plan may offer.
Salary reduction plans are among the easiest
ways to build retirement dollars. The money is subtracted before
you get your paycheck, so you’re not tempted to spend it.
And many employers match a portion of your contribution, giving
your account an added boost.
