What is the best way to invest my money for retirement which will not penalize me to withdraw it early?

I currently have a 401k but it bothers me that I would be penalized to withdraw it early. My company only matches 2% and since I work only part time at the time that turns out to be like 200 dollars. I want to have the ability to take out my money whenever I want without worry of being penalized. I want something where I can just deposit money into it myself after I get my paycheck (I am dissaplined enough to do this). I was thinking of a CD ( I don't mind having my money locked up for a couple years at a time)... Is there another option for me. Another stipulation. I don't want anything to do with the stock market anymore! So no mutual funds or stuff like that. Does that just limit me to CD's or are there other options? Thanks!|||I have a few quick suggestions: In your AGI is under 100k, put it into a Roth IRA at Vanguard (Target Retirement fund, or total market stock fund or Prime Money fund...) or Fidelity (total market fund or SP500) up to $5000 a year for money you are really trying to save for retirement -- assuming your retirement is at least 10 years out. You can with drawl your contributions -- not gains or interest -- at any time without penalty. A little paperwork headache, but not too bad.





Next, up to $5,000 can be put into I series savings bonds. Interest is tax deferred until they are cashed. You can cash after a year with a penalty of only 3 months interest and after 5 years with no penalty.





Finally, you can set up a cash (non retirement) account at Vanguard or TD Ameritrade for a few thousand dollars and invest in low cost mutual funds (V) or ETFs (TD). Or open an INGDirect Money Market Savings account.





CD's work too...but I'd do I-bonds first because of the tax deferral if you don't actually need to use the money.|||Money Market or Dividend Stocks. All the others are better but aren't liquid and/or have penalties.