Part 4: Investing for Retirement
#Take advantage of employer plans. Many employers offer the benefit of saving plans. These plans allow employees to put aside a percentage of their salary each pay period to invest in stocks, bonds and mutual funds. In addition, many larger companies offer matching plans. You personally contribute a set amount of money; let’s say 3% and your company will match that 3% with their own 3% (essentially free money). You should definitely take advantage of both employer's plans, as well as a company’s matching of funds.- Be sure to talk to your employer about the conditions of the plan and matching, for example contribution/matching limits or time constraints.<ref>Ref</ref>
#Contribute to PRS. A PRS, or individual retirement account, is a type of account that can be used to easily save for retirement. You can contribute up to RM5,500 per year to an PRS, and may be able to contribute up to RM6,500 if you are over 50. Your contribution limit depends on your income, and some high-earning individuals or households may not qualify to contribute to an PRS at all. Talk to a financial professional about your options when selecting an PRS.<ref>Ref</ref>
#Counteract retirement savings gaps. If you change jobs, you may have a gap period in which you are unable to contribute to retirement or unable to qualify for the company plan at your new job. In this instances, work to still save the same amount you did before in an PRS or personal investment account. Any gaps just mean that you will have to contribute more to the account later in order to meet your goal.<ref>Ref</ref>
#Go high risk if you're younger. For younger investors, you have the option of investing in high risk vehicles. For instance, you can buy international stocks or purchase large amounts of small-cap stock (stock in small and growing companies). Because you have lots of time to grow your investments you won’t be completely devastated if your investments decline. For those that have built up a substantial nest egg and are close to retirement, your best bet is to stick with low to moderate investments; you don’t want to lose your entire retirement the year before you plan on retiring.<ref>Ref</ref>
== Tips ==
- Start saving as early as you can. Compound interest will make saving easy for you if you start in your twenties.
- You're never too old to start saving for retirement. Anything you can save will benefit you at least a little bit.
- Even saving a little bit every week or month can help you save a lot for retirement.
- The Social Security Administration provides a helpful retirement planner at https://www.ssa.gov/planners/retire/.
== Related wikiHows ==
*[[Make Money by Buying and Selling]]
*[[Make Money Without Winning the Lottery]]
*[[Use a Document Organiser]]
*[[Retire With Security]]
