Retirement and investing for the long term
How workplace plans, IRAs and Social Security fit together, and the basics of investing without the hype.
Most US retirement planning rests on three things: Social Security, a workplace plan such as a 401(k) if your employer offers one, and your own savings, often in an individual retirement account (IRA). How they fit together depends on your income, your employer and how long you have until you retire.
If your employer matches contributions to a workplace plan, that match is usually worth getting before saving elsewhere. Beyond that, the choice between traditional and Roth accounts is mainly about whether you pay tax now or later. Contribution limits and tax rules are set by the IRS and change over time, so check the current figures.
Investing for the long term is mostly about low costs, spreading your money across many investments and staying put through the ups and downs. Be wary of anyone promising high returns with no risk, and check that any adviser is registered before you hand over money.
Retirement and investing topics
401(k) plans
How they work, employer matching and what happens when you change jobs.
Traditional versus Roth IRA
The key differences and how to think about which is right for you.
How Social Security works
How benefits are calculated and what claiming age changes.
Investing basics
Stocks, bonds and funds, risk, fees and diversification.
Avoiding investment scams
Warning signs, and how to check whether an adviser is registered.
Common questions
When can I claim Social Security?
You can claim retirement benefits from age 62, but your monthly benefit is larger if you wait. Your full retirement age depends on the year you were born. The Social Security Administration’s website has your estimate and the details.
Should I put money in a 401(k) or an IRA?
If your employer offers a match, contributing enough to receive it is usually the first step. After that, an IRA or additional 401(k) saving both have a place, and the best mix depends on fees, investment choices and your tax situation.
How do I check whether an investment adviser is legitimate?
You can look up advisers and brokers for free on the SEC’s Investor.gov and FINRA’s BrokerCheck tools. Be cautious of anyone who guarantees returns or pressures you to decide quickly.
Official sources and free help
- Social Security Administration(opens in a new tab)
Your benefit estimate and how to apply.
- Investor.gov(opens in a new tab)
The SEC’s free investor education site, including adviser lookup.
- IRS: retirement plans(opens in a new tab)
Current contribution limits and tax rules.
This page provides general information only. It is not personalized financial, legal or tax advice, and rules and figures can change and can differ from state to state. Your situation is unique, so please check official sources such as the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), and speak to a qualified retirement or tax professional before making important decisions about your money.