Investing for your retirement is one of the safest ways to ensure that you do not have to be financially dependent on anyone in your old age. And if you invest right, you may even want to retire earlier than planned. Here are some tips to start your retirement investment plans and some of the investment companies to explore for beginners and otherwise. This short investment guide will help you understand the basics.

Start early
Investing money is a wise financial decision that should not be delayed. If you haven’t been investing before today, now is the right time to start. The concept of compound interest is a powerful tool that can help individuals reach their financial goals, but it’s most effective when you begin as early as you can.

For example, if you put $5000 each year in savings and start by the age of 32, then by the age of 67, you will have around $557,000.

But if you started investing at 22, your returns would be around double. Around $1,063,000. This is why all advisors urge investors to start as early as possible.

How much to save
There’s no right answer to this, except that you should save as much as possible. Make saving a habit, even if it means saving $25 a month. When you make saving a habit, the instinct to save only grows more and more. This is also because you can see your money grow in your bank account, so the gratification helps the saving process.

Consider Enrolling in a 401(k) plan
Enrolling in a 401(k) plan is a smart choice if you want to boost your savings. Look for an employer who offers to contribute to your savings. This way, you can save money for your future while your employer also adds some extra funds to your account. It may not seem like a lot at the time, but with compound interest, these funds will gradually grow over time. Also, when saving through a 401(k), you do not have to pay any tax on that saving.

Explore your investment options
Study all your investment options carefully and make an informed choice. Mutual funds, stocks, equity, and many other options may give you high returns. However, there is also high risk in some kinds of investments, so always be sure what kind of investment profile you want to grow. It’s always better to consult with a financial advisor or an investment expert at the beginning and learn to study the market and economics of how this works. You can then gradually make informed choices yourself.

Specific retirement plans
Apart from these investment options, there are also some retirement plans focused on saving money for retirement for individuals. These include Guaranteed Income Annuities, Traditional pensions, Cash-value life insurance plans, Non-qualified deferred compensation plans, or IRA plans. A financial expert may be able to help with the right plan for you.

There are some online brokers for beginners that you can explore, like TD Ameritrade, Fidelity Investments, Charles Schwab, Robinhood, and also E*Trade. There are more options available that you can explore and see which works your requirements the best.