How to Save for Retirement

Saving for retirement is indeed a critical issue and retirement planning has to be done effectively and properly. A sound advise that I can give you is that start investing in right channels right after you turn 18 or 20. It is difficult to answer the question 'how much to save for retirement' as a maximum number of expenditures are uncertain and unpredictable. Calculating and saving up, investing regularly and wisely with appropriate thought is essential. Exercise caution over unnecessary expenditure and every month, set aside a certain sum so as to make a successful experiment. Here are some options that ensure returns at minimum risk.

Life Insurance
One of the basic and also the easiest ways to invest for long term is a life insurance plan. Note that this plan should have a return on investment policy. Such life insurance policies are known as Par or participating life insurance policies. Sometimes a combination of term life insurance and participating insurance is also found. However, when you are planning to save for your retirement, get an insurance policy that gives a returns upon maturity. Avoid polities policies that do not give returns such as term insurance policies. Life insurance policies that have regular return payment schedule, such as a payment after every 3 years, plus there is also an advantage of death proceeds. Overall, insurance policies that have a regular and systematic repayment structure and schedule tend to be a great investment for retirement. The premium however, one might notice is a bit higher than the normal term insurance policies, the return is however worth it. Note that in most of the cases premium is fixed and in all cases, it is recurring.

Individual Retirement Account (IRA)
An individual saving account is a good choice to save money for retirement. An IRA or an Individual Retirement Account is a good option for investment. The contribution to IRA provides a good rate of proceeds and also a tax benefit, till a certain extent. The amount contributed to an IRA does not carry any lower limit. Hence you can contribute as much as you want, without having the trouble of liability on your head. The second advantage is that you can contribute larger amounts with your spouse and reap greater proceeds.

Annuity
The third aspect that I would like to advocate is annuities. An annuity is a financial instrument, which tends to function somewhat like an insurance policy, there are however some subtle differences. In case of annuity, the payment repayment structures are usually the same and additional benefit that is provided is guarantees, such as bonus on better market conditions, higher repayment on higher investments, etc. Thus there is a chance of having higher proceeds.

Stock and Corporate Equity
The next option is stock and equity. The stock market can become a great destination for your investments for old age. Stock investing and equity have regular income in the form of dividends, not to mention the high market values. Apart from individual shares, one can also investment in private placement programs and collective investment schemes. Basically you will have a professionally managed fund with great proceeds. However exercise caution while investing.

There are several other options such as mutual funds, the returns of which depend upon market position or simply real estate, the price of which definitely rises substantially however, there is always the probability of high initial investments.