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Dear Olga: Retirement Savings Without a 401k

Dear Olga,


Can you give me tips to start planning for retirement when my full time job does not provide me with a retirement plan?


Thank you,

FBR

Dear FBR,


I recently explored how many employers provide 401k plans in a blog post and about only 56% of employers actually provide a 401k account as a benefit for their employees. I'm glad you asked this question, because you're not alone.


For those folks who don't have a 401k plan provided by an employer or you're a freelancer, there is a similar option called an IRA. The yearly limit for 2019 to contribute to an IRA is $6,000 per year, which is significantly less than the $19,000 limit for 401k accounts. However being able to take advantage of similar savings incentives is better than nothing.


Even if you don't have the same limit as a 401k account holder you can still save a substantial amount. Here is an infographic from Fidelity to give you an idea:


You can open an IRA account through most financial institution like your bank or investment companies like Charles Schwab and Etrade.

I hope this gives you a good place to start. If you need more ideas, feel free to write in again.


Good luck!

Olga

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