Saving for Retirement at Work
Financial Advisor Tim Hayes Boston, MA | An Independent Consultant
Saving money in the right plan with the right mix of investments will put you on the path towards a comfortable retirement.
Public school employees are eligible for two: a 403b and a 457. Self-employed business owners can use one of the three.
- Solo 401k
- or SEP Plan
Plus many of you have 401(k) plans where you can choose a traditional pre-tax contribution or an after-tax Roth contribution.
Contributing to Your Plan
If you can’t save the maximum try saving a percentage of your salary. For example, 5%, that way as your pay goes up the rate saved stays the same, but the dollar amount goes up.
A rule-of-thumb is to subtract your age from 100 and use the result to invest in equities. So if you are 40 years old subtracting your age from 100 equals 60. So 60 would be the percentage of your retirement account invested in riskier investments such as stocks and high-yield bonds.
Need Help Saving for Retirement?
- I build then manage the retirement accounts for individuals with IRAs
- Including spouses that inherit an IRA
- Public school teachers with 403b accounts
- Business owners for whom I design and manage their SIMPLE, solo 401k, or SEP