Your
school
days
may
be
behind
you,
but
that
doesn’t
mean
you
shouldn’t
test
yourself
on
various
subjects
from
time
to
time.
And
one
of
the
most
important
topics
you
can
study
is
retirement
planning.
So,
take
a
couple
of
minutes
to
take
this
“quiz.”
The
answers–and
even
the
questions–may
prove
valuable
to
you
as
you
save
and
invest
for
retirement.
·
Have
you
put
a
“price
tag”
on
your
retirement
lifestyle?
All
of
us
have
different
ideas
of
the
“ideal”
retirement.
Your
brother
may
plan
to
travel
the
world,
your
sister
may
want
to
open
her
own
small
business
and
you
may
choose
to
volunteer.
Once
you
know
how
you
want
to
spend
your
retirement
years,
you
can
calculate
about
how
much
your
retirement
will
cost.
A
financial
advisor
can
help
you
arrive
at
a
good
estimate
of
how
much
you'll
need
to
spend
per
year.
·
Do
you
contribute
to
your
401(k)
or
other
employer‑sponsored
retirement
plan?
If
you
have
a
401(k)
or
similar
plan
where
you
work,
you'll
receive
several
key
benefits
by
contributing.
First,
your
money
has
the
potential
to
grow
on
a
tax‑deferred
basis,
which
means
it
can
potentially
grow
faster
than
if
it
were
placed
in
an
investment
on
which
you
paid
taxes
every
year.
Second,
you
typically
invest
pre‑tax
dollars,
which
means
your
contributions
can
actually
help
lower
your
annual
taxable
income.
And
third,
you
can
spread
your
dollars
among
a
range
of
various
investment
choices.
·
Do
you
boost
your
401(k)
contributions
every
time
your
salary
increases?
If
you
don’t,
you
should.
Your
annual
401(k)
contribution
limits
are
pretty
high:
$15,500
in
2007,
or
$20,500
if
you’re
50
or
older.
Obviously,
the
more
you
contribute,
the
greater
your
chances
of
achieving
your
retirement
savings
goals.
·
Do
you
also
contribute
to
an
IRA?
Even
if
you
contribute
to
a
401(k),
you
can
put
money
in
an
IRA.
A
traditional
IRA
has
the
potential
to
grows
tax‑deferred,
while
a
Roth
IRA
offers
tax‑free
earnings
potential,
provided
you've
had
your
account
at
least
five
years
and
you
don't
start
taking
withdrawals
until
you’re
59‑1/2.
(Income
limits
apply
to
the
Roth
IRA,
however.)
In
2007,
you
can
put
in
$4,000
to
an
IRA,
or
$5,000
if
you’re
50
or
older.
And
you
can
fund
your
IRA
with
a
variety
of
different
investments.
·
If
you’re
self‑employed,
have
you
set
up
a
retirement
plan?
If
you
work
for
yourself,
or
run
your
own
small
business,
you'll
need
to
set
up
a
retirement
plan.
Fortunately,
you've
got
many
attractive
options,
all
of
which
offer
tax
deferral
and
a
range
of
investment
choices.
Depending
on
your
situation,
you
can
establish
an
“owner‑only”
401(k),
a
SEP‑IRA,
a
SIMPLE
IRA
or
a
Keogh
plan.
Your
tax
advisor
can
help
you
select
the
plan
that's
right
for
you.
·
Have
you
explored
other
retirement
savings
vehicles?
If
you’ve
“maxed
out”
on
your
IRA
and
your
401(k)
or
self‑employed
plan,
and
you
can
still
afford
to
put
away
more
for
retirement,
you'll
want
to
explore
other
investments,
such
as
annuities,
which
offer
tax‑deferred
growth
potential
and
have
very
high
contribution
limits.
