The best way to save for retirement is to “pay yourself first.” This means that you should have an automatic withdrawal from your paycheck to a retirement account. If you are eligible to participate in an employer plan at work, contribute at least enough to receive the employer match, if there is one. If possible, contribute the full amount that is allowed by your plan.
If you do not receive a regular pay check (you are self-employed) or you are not covered by an employer-sponsored retirement plan, establish a plan for yourself in which you decide that a percentage of your income (whenever it is received) is deposited into an account designated for retirement. Decide how you will invest your retirement savings (you may be able to choose from a group of mutual funds in an employer plan), or you may have to decide on the investment on your own. Modules 6 and 7 at Planning for a Secure Retirement ( http://www.ces.purdue.edu/retirement/) will help you learn more about an employer plan or about establishing your own plan.
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