How to begin investing for retirement?

Try looking at some of the personal finances guru's websites. They are a WEALTH of knowledge.

Suze Orman and Dave Ramsey....

If your making a decent wage then a traditional IRA is the way to go. Like your 401k whatever you put into a traditional IRA is deductible at the end of the year. This means if you make 40,000 and you put 4,000 into your IRA during the year the government only taxes you on 36,000. Now when you take your funds out upon the time of your retirement you will be making less therefore you will be taxed less(your tax bracket will be smaller therefore you will be taxed less). A roth IRA is not deductible, so whatever you put into it you are taxed on. When you retire though you will not be taxed from this type of IRA, so it depends on your specific situation and preference. The sooner you start the better, If you look at a chart of compounding interest where a 25 year old puts 2k into an IRA with 10% interest(avg mutual fund) each year from age 25-31 then stopped, that individual will have the same amount as if a 31 year old started with 2k a year until the age of retirement. It's much more convincing if I showed you the chart I have but I don't have it on my computer nor do I have a scanner. A good place to get advice would be a financial adviser at your bank, they usually have some good options for you.

1. Calculate your net worth every three months, so you know well (or not) you're doing.

2. Automate the saving process--participate in the 401(k), which you're already doing, and have a preauthorized amount automatically transferred every pay day from your checking account to the Roth IRA.

3. Aim for market average returns, focused on long term investing (in other words, don't go for get rich quick schemes, which often are scams).

4. Keep your portfolio simple--mutual funds, stocks, bonds, and credit union or bank CDs.

5. Save a healthy percentage of your earned income--10% to 15% would be good, 20% would be excellent.

6. Work as long as you can to maximize Social Security benefits.

7. Be persistent about saving and investing. This is a game where quitters are, indeed, losers.