Saving for Retirement
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.
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.
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.
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.