Say "Yes" To Free Money
Say "Yes" To Free Money
Say "Yes" To Free Money
Say "Yes" To Free Money
If your employer offers matching contributions to their 401(k) plan, be sure that you make the minimum contribution required to get the match.
Some companies offer up to a 66% match.
That's an instant 66% return on your investment.
You won't find a better deal anywhere else, at least not one that is LEGAL.
This is about as close to a "no-brainer" as you can get!
But, don't just take my word for it. Take a look at the numbers below.
Results Summary
Current 401(k) balance
$0
Years to invest
30
Annual rate of return
8.00%
Annual salary
$80,000
Expected annual salary increase
1.0%
Percent to contribute
6.00%
Your 401(k) contribution*
$4,800.00 per year
Your employer's 401(k) match
$3,168.00 per year
This is a 66% employer match up to a maximum of 6.00% of your annual salary.
Total you will contribute
$168,637.16
Total your employer will contribute
$111,300.50
Total at age 60
$1,034,475
Total without employer match
$623,177
Check that out!
We're talking about the difference between having a cool one million dollars when you retire versus having only $600k.
I can think of some very fun things on my Ultimate Life list to do with an extra $400k.
There is one caveat.
When setting up your 401(k) contributions, do not go over the matched amount.
Here's why:
Most 401(k) plans offer very limited investing options.
To obtain the true diversification you need, you will have to go elsewhere.
Use any additional money you would like to invest to max out your annual contributions to a tax-advantaged Roth IRA account.
You may deposit any additional investing funds above the maximum annual IRA contribution into an individual brokerage account.
Oh and here's another little tidbit for you, just in case you need more convincing:
Your company's 401(k) match is part of your total compensation package as an employee.
So, not only is it free money, it's also a hard earned benefit.
It's really a component of your earned wages.
So, if you skip it, you're essentially giving away money you worked for.
Would you ever hand back a paycheck?
"Hey, Mr. Corporation where I toil away 8-10 hours a day, 5 days a week, I don't need this paycheck, you can keep it."
I can hear you right now screaming: "Yeah right! Not a chance!"
But that's what you're doing if you're missing out on your company's 401(k) matching contributions.
Your purchase of this course tells me you are MUCH smarter than that.
So, whatever you do, please don't pass up your company match.
Not only have you earned it, but it might just be the difference between living the good life in retirement and just scraping by.
http://www.articlesbase.com/investing-articles/say-yes-to-free-money-2824005.html
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