5 Ways to Save for Retirement Outside a 401(k)

Your workplace 401(k) plan is typically the most convenient way to begin saving for retirement. But if you don't have access to a 401(k) plan or it isn't meeting all of your investment needs, you may want to diversify your savings. The good news is there are quite a few ways to save money for retirement without completely relying on a 401(k) plan. Consider these alternative ways to save for retirement:

[See: How to Save for Retirement on Less Than $40,000 Per Year.]

1. Traditional IRA. A 401(k) isn't the only type of retirement savings account. A traditional individual retirement account also allows you to save pre-tax dollars, and you don't pay taxes on your contributions until you withdraw the money from the account. A traditional IRA grows quickly because all the dividends, interest payments and capital gains in the account compound annually without being taxed. IRAs generally have more investment options than 401(k) plans, so you get more control over how you invest. However, IRAs have lower contribution limits than 401(k) plans and don't provide an employer match.


Source : Yahoo