skeleton567 - Friday, February 8, 2019 10:29 AM

primitivefuture2006 - Friday, February 8, 2019 9:21 AM

How do you save for retirement? Are there services you use that compounds yearly your savings? Thanks!

Primitive, here are the two things I did.
First, if your employer has a plan, use it.  They can make regular payroll deductions, which you never see so are regular and painless.  Depending on where you are, in the US these are 401k plans which may include 'profit sharing' contributions by your employer.  You don't pay any incoome tax on the amount you contribute or your employer contributes, until you retire, and possibly are in a lower tax bracket.  Currently you can contribute up to 15% of your salary and have no tax deducted.  Then that grows also tax free for the years before you retire.  

Also consider that while the 401k contribution is limited to the 15% or your salary, there is no limit to the taxable investment deposits you can make to other retirement accounts.

Even if you do not have a 401k account available, there are IRA (Individual Retirement Account) that are also tax-deductible up to a point, and then regular brokerage accounts that are taxable.  These also grow tax-free until you retire. 

So how do you do this?  A simple thing to do is use a 'bill-pay' system through your bank or credit union.  Set up an automatic 'payment' every payday to send an EFT deposit to you investment account.  The automatic part provides the discipline to help make this less painful.  And the tax penalty for withdrawals helps avoid withdrawing and spending the funds now. 

You may have years of fantastic growth, and years of painful losses, but over the years the odds are for good growth on average.  You can't panic in the bad years, and can really enjoy the good ones. What you need is the advice and guidance of investment professionals working for you.  In fact, the bad years are usually the BEST time to be making deposits, as there it then better future growth as things recover.  

 My wife and I have used Fidelity (www.fidelity.com) for many years after trying a number of different financial advisers, and they have done well for us ( at times you may need to get forceful to get them to listen to your needs and comfort level, but that would be the same for any others ).