One of the reasons I love writing about ways to be smart about spending money is that it forces me to learn about it even more. Confession: I’m not naturally that great with money. I like to shop, I like to make excuses to celebrate, and I’m not especially fond of saving. That said, I am good with money now. It can be learned! And one of the things you don’t have to be a natural-born math whiz to figure out is saving for retirement. Of all the different places to put your money, saving for retirement is one that most people know they should be paying more attention to, but for most, they simply don’t know where to start. Well, no worries – take a deep breath, and don’t let all the barrage of numbers and letters intimidate you.

Here’s a simplified breakdown of some of the more common retirement savings options

Don’t be crazy – be smart

Investing doesn’t have to be a game of Russian roulette. Think of it as savings with benefits. Sure, it usually involves some degree of risk, but it doesn’t have to be a keep-you-up-at-night-might-lose-the-kids’-college-fund kind of risk. It’s calculated. It can be calm. Don’t operate under the Hollywood-inspired assumption that if you aren’t worried about losing your shirt then you aren’t investing hard enough. Think about what your goals are, and strive to meet them – don’t be hasty and foolish in any get-rich-quick schemes. Those kinds of things are better left to those with tons of disposable income.

We’ll call the rest of it “middle-class investing.” Here are a few wise places to stick your money and watch it (hopefully) grow:

1. Workplace Retirement Accounts

If you’re anything like me, you probably worry about becoming a lonely old spinster with no kids, piles of bills, no money, and a ton of cats. Whether the aforementioned scenario describes your future or not, you’re still going to want to enjoy your Golden Years with a nice cushy retirement fund.

Of all the possible options for this, the best is a workplace retirement account, such as a 401k, 403b, or 457. What’s wonderful about these plans is that, in addition to earning tax benefits, many employers will match your savings. Free money. I’ll say that again: free money. You’d be ill-advised to not take advantage of one of these investing options. For 2010, the contribution limit that employees can put into most workplace plans is $16,500 or $22,000 if you’re 50 or older.

2. Individual Retirement Arrangements or IRAs

If you are self-employed, or your company doesn’t offer a workplace retirement account option, the next best way to go is an IRA. Like workplace accounts, you get certain tax advantages and loads of investment options. You can even use an IRA on top of a workplace retirement account if you’ve maxed that out. The downside: there are savings limits on IRAs; The IRA contribution limit for 2010 is $5,000 for people under 50 or $6,000 if you’re 50 or older. You can even start an IRA for your child by “hiring” them within a family-owned business (think “administrative assistant”). That way, they have taxable income from which to contribute to an IRA. And you can contribute yourself even more; whether they are employed by you or later have an outside job, parents are allowed to “gift” to a child’s IRA, as long as it doesn’t exceed the child’s own contribution. Starting your kids on the path to retirement savings when they’re young, when they have another 30 or 40 years before they even begin thinking about using the money, is one of the most solid investments you can make in their future – not to mention, early lessons on managing money are incredibly valuable.

Here are some sites to help you get your IRA started: etrade.com, zecco.com, or sharebuilder.com.

3. Taxable Brokerage Account

Once you’ve gotten the most out of your workable retirement accounts and you’re contributing as much as possible to your IRA, you might still feel like you want to do even more to invest in your retirement. You little go-getter! Since the previously mentioned options have limits to them, you might want to consider a taxable brokerage account. Essentially, a taxable brokerage account is one that holds all your investments (stocks and funds) outside your specific retirement plans. It’s called “taxable” because it’s subject to yearly capital gains rate taxes, as opposed to “non-taxable” accounts, which should truly be called “deferred tax” accounts – in the end, they’re all getting Uncle Sam’s paw in the pot.

Unlike a 401(k), with which the only way to get the funds is either borrowing against the 401(k) or withdrawing from the it and taking a 10% penalty, you have much greater flexibility and access to your own funds with a regular taxable account. And for some people, this makes a huge difference; often, people are uncomfortable with the idea of having to jump through hoops just to access their own money, should the need arise.

You can open one of these accounts with the knowledgeable help of your friendly neighborhood brokerage company (the sites listed above are also great for this route).

What do you think?

Saving for retirement is one of those parts of life that is very personal; everyone’s financial situation, family obligations, and retirement plans differ, which means that their route for saving for the Golden Years will differ as well. This outline of a few of your options is just the start of t of the conversation – what are your experiences navigating the retirement savings waters?