By the time a person is in their 30's or 40's they should be more solidly established in a retirement investment strategy. First, and foremost, the emergency savings plan should be unquestionably in place. The retirement accounts should be comprised of more than one investment vehicles that are comfortable for you. You should have a monthly budget in place that is a routine for you. with debt under control in anticipation of a debt-free retirement. How much money you will need for retirement should be calculated and compared to the returns that your existing savings would be expected to earn at that time. Any gaps should be addressed with some way to close them. Having a written budget in front of you can be very convenient for this.
Other investments that typical for an individual can be invested in at this time in their working career are:
401(k) plan - A government sponsored investment account offered by employers. These are voluntary investment accounts that let employees make tax-deferred contributions from their wages or salaries. Contribution limits and the type of securities or funds that can be chosen for investing varies from company to company. Some employers provide matching funds to an employee's contributions. Details about these plans should be provided by the employer.
IRAs - Were previously mentioned, but there are different IRAs offered by employers, such as the usual traditional and Roth IRAs, the Simplified Employee Pension (SEP), SIMPLE IRAs offered by small businesses, and spin-offs of the traditional IRA offered by some financial institutions.
Company pension plans - two kinds of employer-sponsored plans that are offered by some employers are the defined-benefit pension plan and the defined-contribution plan. A defined-benefit plan means that the benefit payments during retirement are guaranteed according to a contract and won't change no matter what to the value of the plan's investments. A defined-contribution plan is one where the contributions are set according to the agreement but the benefit payments can vary with the performance of the plan's investments.
Annuities - Are offered by insurance companies in various types with many options. These are basically contracts where the annuitant agrees to pay the company a certain amount of cash in the form of a lump-sum, or periodic payments over specified amount of time in return for an income over a specified number of years. The two basic types of annuities are fixed annuities and variable annuities.