Which Retirement Plan Should I Add to First?
Saving for retirement is one of the most important ways that you can prepare for your financial future. When you stop working, nearly all of your income dries up. Although you may qualify to receive Social Security benefits, they'll only go partway toward replacing the income that your job paid you. Relying too much on Social Security can be a huge mistake that will leave you struggling to make ends meet after you retire.
It's therefore important to use other methods of saving for retirement to supplement Social Security. However, there are many different types of accounts you can use, and so it can be hard to figure out which one makes the most sense. The answer differs depending on your situation, but there are some general rules that you can follow to see which strategy is best for you.
Not everyone has access to a 401(k) or similar retirement plan at work, and among those who do, not every employer offers matching contributions when you take money out of your own paycheck to put it in a 401(k). But for those who are fortunate enough to work for someone willing to make 401(k) matching contributions on your behalf, it's almost always the best move to contribute enough to the 401(k) to claim that match in full.
Source Fool.com
