Some factors for where to save money

There are several options for where to save your money for retirement. Here are some suggestions from financial experts:

 

Roth IRA: While you can't withdraw your earnings from a Roth until age 59, you can withdraw your contributions. If you contribute $6,000 to your Roth each year from age 20 to 45, your total contributions would be $150,000. But if you earned an 8% annual return, your Roth would be worth nearly $440,000 when you hit early retirement.

 
Taxable brokerage account: If you plan to retire five or more years before age 59, your next best place to put retirement money away may be a taxable brokerage account. You'll have to pay taxes on your contributions and growth, but you'll be able to use the money at any time without penalty. Plus, in most years, you'll get a much better return for your money than in a savings account or CD.

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High-yield savings accounts: While some of your money should be in the stock market, it's also good to have more on hand in a savings account that's easily accessible. With a high-yield savings account, you can earn more interest than you would in a traditional savings, plus your money is FDIC-insured for up to $250,000 per account type per bank. 

 
Retirement savings accounts: Take full advantage of the retirement savings accounts available to you, whether you're a traditional worker or self-employed. The main types of investment accounts for retirement savings are 401(k)s (which come in regular and Roth versions), the Roth IRA, and the traditional IRA.

 
Target-date funds or robo-advisors: If you want a truly hands-off, set-it-and-forget-it approach to retirement saving, consider target-date funds or robo-advisors.

 

 

It's important to note that the best place to save your money for retirement depends on your individual circumstances and goals. It's always a good idea to consult with a financial advisor to determine the specific savings strategy that works best for you.