Saving for Retirement

If you're like most people, you may spend about 20 to 30 years in retirement. That's a significant amount of time where you'll want to make sure you have enough money to live the lifestyle you want and to make sure your savings outlive you.

Whatever stage you are in planning you retirement, putting aside money for the future makes sense. How much you choose to save depends on your individual situation and how long you have until you retire. If your employer offers a retirement plan, you'll want to make sure you take advantage of any matching contributions they might offer. In addition, the following strategies have been successful for many investors.

Open an IRA

Even if you have a retirement plan at work, an IRA provides another tax-advantaged way to save for your retirement goal. Find out more in the IRA Center.

Max Out an Existing IRA

Contributing the full contribution limit to your existing IRA will help you take advantage of potential future earnings and tax benefits. If you are age 50 or above you can make an additional catch-up contribution to help make up for any lost investment time in the past. Review IRA Contribution Limits.

Save Automatically

This "set it and forget it" strategy helps eliminate the guesswork about when to invest by automatically adding to your retirement savings on a regular basis. Find out more about automatic investing.

Plan Your Investments Based on Your Tolerance for Risk

Our Investment Planner tool provides complimentary investment guidance and begins with a few questions. Based on your answers, we can help:

  • determine your risk tolerance and investor profile
  • Show you a compatible asset allocation and American Century Investments® fund

Balance Your Portfolio

Spreading your investments among stock, bond and money market funds can help lower your investment risk, and even out price swings during the normal ups and downs of the markets. Although this diversification strategy cannot ensure against loss, it has been successful for many investors.

Stay on Track

Review your investments regularly, either on your own or with an Investment Consultant.

Keep a Long-Term View

The more time you have for your investments to grow and compound, the more likely you are to reach your goals.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
Past performance is no guarantee of future results. Investment returns will fluctuate and it is possible to lose money.

IRA investment earnings are not taxed. Depending on the type of IRA and certain other factors, these earnings, as well as the original contributions, may be taxed at your ordinary income tax rate upon withdrawal. A 10% penalty may be imposed for early withdrawal before age 59½.

Brokerage Services are provided by American Century Brokerage, a division of American Century Investment Services, Inc., registered broker/dealer, member FINRA, SIPC.