How can you save for retirement when your job doesnt offer a 401(k)?
Thats what were discussing this week.
However, I feel like Im not saving enough with the annual limit.
Do I have other retirement savings options?
Also, Im 26, so should I really be looking at retirement savings options or just investing?
If the latter… where do I start?
Saving for Retirement in Your 20s
Its great that youre already maxing out your Roth at 26.
That said, its important to consider your other options.
To start, do you have a cash cushion?
And youll want to hold that in a high-yield savings account (check out Ally or Synchrony).
Rates have been going up lately, which means you might find interest rates close to two percent.
It wont make you rich, but its better than weve seen in a few years.
Watch out for account minimums and sneaky fees for ATM access.
Additionally, it makes sense to work on paying off debt now, if you have any.
All of this said: Yes, keep investingforretirement.
In many ways 26isvery young, and youre likely not making a ton of money yet.
But these are crucial years for investing.
Retirement vehicles like the Roth are tax-advantaged and will give you a head-start on accomplishing your goals.
Just realize that there are always tax implications when you invest.
With taxable accounts, you want to invest for the long term, just like with your retirement accounts.
If you have a high-deductible health plan, you could also look into contributing more to that.
One final option is storing some of that cash youve saved in a CD.
These products are boring, but their rates are rising, making them more attractive.
Theyre safer than stocks but will require setting aside money for a predetermined number of months or years.
Still, youre guaranteed a certain return, which is attractive to some investors.
Every little bit counts, if only to get into the right habits.
