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What are the three most common options to start saving for retirement?

The three most common options to start saving for retirement are:

1. 401(k) plan: A 401(k) plan is a retirement savings plan offered by many employers. Employees can contribute a portion of their paycheck to their 401(k) plan, and employers may also make matching contributions.
2. Individual retirement account (IRA): An IRA is a personal retirement savings account that can be opened by anyone. There are two types of IRAs: traditional IRAs and Roth IRAs.
3. Annuities: Annuities are insurance contracts that provide guaranteed income payments in retirement.

In basic terms, what is a 401K?

A 401(k) plan is a retirement savings plan offered by many employers. Employees can contribute a portion of their paycheck to their 401(k) plan, and employers may also make matching contributions. The money in a 401(k) plan grows tax-deferred, meaning that you do not pay taxes on the money until you withdraw it in retirement.

401(k) plans have a number of advantages, including:

• Tax benefits: The money in a 401(k) plan grows tax-deferred, meaning that you do not pay taxes on the money until you withdraw it in retirement. This can save you a significant amount of money on taxes.
• Employer matching contributions: Many employers offer matching contributions to their employees’ 401(k) plans. This means that your employer will contribute a certain amount of money to your 401(k) plan, up to a certain percentage of your salary. This is essentially free money, so it is important to take advantage of it if your employer offers it.
• Investment options: 401(k) plans offer a variety of investment options, so you can choose the investments that are right for you and your risk tolerance.

401(k) plans are a great way to save for retirement. If your employer offers a 401(k) plan, I highly recommend participating in it.