Ways To Save For Retirement Without A 401(K)

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

When applying for a job, one of the most pressing concerns for potential employees is whether or not a 401(K) plan is offered by the employer. However, it isn't uncommon to find and land a dream job that doesn't offer one - but then what? Retirement is going to come sooner or later, and by that point it will be essential that you already have enough saved up to carry you through.

If you do not have a 401(K) plan available to you through your employer, here are a few alternative ways that you can save:

Roth IRA accounts: Roth IRA accounts are nondeductible IRAs that permit tax-free withdrawals so long as certain conditions are met. Although they generally have the same contribution limits as a traditional IRA, the fact that you don't have to pay taxes on the earnings or the withdrawals is a major plus. For more details on the benefits of this type of account, please click here.

Use direct deposit: When participating in a 401(K), the contributions are immediately withheld from your paycheck and deposited into your 401(K) account. The good news? This can easily be replicated with an IRA or other investment account that you have set up. This way, you won't necessarily be responsible for needing to transfer your money into different accounts on your own; rather, it will be done for you just like it would be with a 401(K).

Open a savings account: If you don't already have a savings account, open one up and dedicate it to retirement. Then, create a plan for yourself that dictates when and how money will be deposited. Whether you choose to contribute biweekly, monthly, or in some other shape or form, the simple act of putting some money aside whenever you can is a great way to build up your savings for the retirement phase of your life.

For additional ways to save for retirement without using a 401(K), check out this article from U.S News and World Report MONEY. 

Did you know that retirement planning is one of our specialties here at American Investment Planners LLC? From 401(K)s to Roth IRAs, traditional IRAs and more, our team knows what it takes to prepare our clients for a successful future. 

For more information about how we can help, please give us a call at (516) 932-5130.