Meet your employer’s match

“If your employer wants to match your 401(k) plan contributions, at least make sure you contribute long enough and take advantage of the match” as Greenberg advised. For example, an employer might want to match 50% of employee contributions up to 5% of your salary, which means that if you earn $50,000 a year and contribute $2,500 to your plan, your employer will add another $1,250, which is pretty much free money. You shouldn’t leave it on the table.

Open an IRA

You should open an individual retirement account (IRA) to help you build your nest egg. There are two options out there: you can either choose a traditional IRA or a Roth IRA. A traditional IRA might be the proper decision for you, depending on your income and whether or not your spouse is eligible to participate in their workplace retirement plan.

Contributions to any traditional IRA can be tax-deductible, and the potential investment earnings will grow tax-deferred until you decide to withdraw your funds during retirement. If you meet the phased-out modified adjusted gross income limits, which are mainly based on your federal tax filing status, then a Roth IRA could be the proper choice for you.