Best Retirement Plans

SavvySaver90

I've been doing some research on retirement plans and I’m finding the options a bit overwhelming. I’m in my early 30s, so I know I have some time, but I really want to start planning ahead to ensure I have a comfortable retirement.

Here are a few plans I’ve looked into:

401(k): My employer offers a 401(k) with a decent match. I’ve been contributing to it, but I'm not sure what percentage of my salary I should aim to contribute.
Roth IRA vs. Traditional IRA: I know the main difference is when you pay taxes, but I'm not sure which one would be more beneficial for me in the long run given my current tax bracket.
SEP IRA/SIMPLE IRA: Since I do a bit of freelance work on the side, I’ve read that these could be good options for self-employed people, but I don’t really understand the specifics.
Other investment options: Should I be exploring other investment options outside of these retirement accounts?

I’m looking for advice on how best to prioritize these options, especially in terms of tax advantages and long-term growth. Would love to hear what others have found effective or any resources that helped when making these decisions!

piggybankpro

Starting with your employer's 401(k) is a great foundational step, especially with the company match—aim to contribute at least enough to get the full match, as that's essentially free money. For the Roth vs. Traditional IRA, consider your current and expected future tax brackets; a Roth is beneficial if you think you'll be in a higher bracket later. As for SEP/SIMPLE IRAs, for your freelance income, SEP IRAs offer higher contribution limits, which might be useful if that income grows. Lastly, diversifying with investments like index funds or ETFs outside of retirement accounts can also boost long-term growth. Many find tools like "Bogleheads" or personal finance subreddits helpful for nuanced advice.