Outlining and executing a plan to save for retirement can be overwhelming and made even more confusing by the number of available investment alternatives out there. A good starting point in making your savings decisions is to look at the various pre versus post tax investments. Pre-tax investments allow you to put off paying taxes on the amount you contribute and the generated earnings s long as they remain in the account until you withdraw funds from your account at retirement. On the contrary, you pay taxes immediately rather than deferring until retirement, so there’s no surprises down the road.

Pre-tax vs. Post-tax Investments

You should also consider the appreciation rate of each of the investment strategies you’re considering. The below graphics depict these rates for some of the common retirement savings strategies and should be helpful in guiding your plans for a happy and healthy retirement. 401k Appreciation Rate

403(b)s Appreciation Rate
Bonds Appreciation Rate

CDs Appreciation Rate

HH Bonds Appreciation Rate

Savings Account Appreciation Rate

Simple IRA Appreciation Rate

Average Annual Appreciation Rates by Retirement Plan