The aging of the population and the potential failing of social security has brought the subject of saving for retirement to the forefront for many people. There are many avenues available to acquire the nest egg that we will need to survive on during our golden years. IRAs, mutual funds, annuities and 401(k)s are just some of the options to research as we prepare for our future.

With all of these choices, the 401(k) is the most popular. The popularity of the 401(k) is due in a large part to the fact that many employers not only offer this option, they also match a certain percentage of your contribution. The amount that employers will match varies from as little as 25% to as much as 100%, although the number of employers that do not match at all is, unfortunately on the rise. Another outstanding benefit a 401(k) offers is that the contributions made by you as an employee are made with pre-tax monies.

A 401(k) plan is also very flexible, giving you choices in regards to your investment strategy. There are some tried and true methods for investing in a 401(k) that depend upon your age at any given time. For example, a young person investing in a 401(k), whether the employer matches or not, has time on their side. This person can invest aggressively, if they feel comfortable doing so. The market will have ups and downs, but the younger the investor the more time is available to ride out these fluctuations in the stock market. As the investor nears retirement, it would be prudent to change the investment strategy to a more conservative approach. This will, in theory make investing money "safer." but still more profitable than a traditional savings account.

In the past, only larger companies were able to offer their employees a 401(k) plan for retirement. A 401(k) retirement plan was simply not an option for the self-employed person. Thankfully, this is not the case in todays marketplace. Today there is a plan called Solo 401(k) or individual 401(k). These plans allow business owners with no employees, with only partners or a spouse to set up retirement plans that are very similar to the traditional 401(k) offered by larger, more established companies.

If you leave an employer that you have a 401(k) plan with, you dont need to leave your retirement investing in their hands. You have the option to do a 401(k) rollover, and it is highly recommended that you take advantage of this option. By rolling over a 401(k), you keep control over your investing options, as you should. When a rollover occurs, the money that is in the 401(k) is rolled all together into an approved investment vessel. These include programs such as a SIMPLE IRA, a SEP IRA account as well as another 401(k) to name a few. It is best to speak with a financial advisor who can help you to accurately weigh the pros and cons of each type of investment opportunity that is available to you.

What is almost never recommended is to take out the 401(k) money either all or in part. This is because there will be a 10% penalty on the portion that is withdrawn, if the withdrawal takes place before the age of 59 . When a rollover is chosen as a way to deal with accrued 401(k) investment, it should be done as one transaction to avoid any of these penalties or fees.

If you are looking for an investment tool as a way to save for retirement, the first place to look is your employer. Get all the facts from them, find out what they contribute, how much your are allowed to contribute and then speak with a good financial advisor as to what steps to take next.