California residents may be interested in ways to get started with saving for retirement. There are many issues that go into balanced retirement planning that can change depending on the person's individual financial situation.
While the person is still working, a 401(k) with a balanced investment strategy can be used to save these retirement funds. The particular mix of investments is dictated by the age and retirement goals of the investor. Money that is in a 401(k) can be rolled over into an IRA after the person stops working. There are two types of these retirement accounts, a traditional IRA and a Roth IRA. The traditional IRA is taxed when the money is distributed, because money is put into it pre-tax. The Roth IRA, on the other hand, is paid into with after-tax earnings. This means that the funds are not taxable when withdrawn. However, any deposits into the account must be kept for five years before withdrawal.