WAUSAU, Wis. (WZAW) -- Figuring out the best practices for your retirement can sometimes be confusing and stressful. But if you plan ahead and do some research, it does't have to be.
Financial adviser Tony Liddle discusses the best retirement saving practices (WZAW photo)
Tony Liddle, a financial adviser from Prosper Wealth Management discussed how to best plan for retirement on NewsChannel 7 at 4 Tuesday.
"The go-to number is 15%. So whatever you make, if you're able to contribute 15% of that to some kind of retirement account, you should be OK," Liddle said.
He added that ideally you should be saving with every paycheck.
"That way you'll invest accordingly. It will go in automatically. That way you move with the market and you aren't doing lump sums at the end of each year."
But how do you know which employer-sponsored retirement plan is best for you? First, it's important to know the difference between plans like a 401(k) and a Roth 401(k). Liddle explained that all accounts grow tax-free, but it comes done to when you want to pay taxes.
"With the Roth accounts, you pay upfront, and with the traditional IRA, traditional 401(k), you pay when you pull the money out. So do you plan to have more money now or in the future?"
He said it's important to plan and save now for your retirement for the compound interest.
"Your goal is that your money is making money for you."