With traditional pension plans fading away, the 401(k) is the easiest way to save for retirement. Think about it – the money is taken out of your paycheck before you even have the chance to spend it! Because of this, your 401(k) is most likely your biggest source of retirement savings; yet, over half of Americans don’t understand exactly how 401(k) plans work. Our goal is to change that. Here are five pieces of advice to consider when it comes to maximizing the benefits of your employer’s retirement plan.
All of these tips considered, here are the most important pieces of advice to remember: Save as much as you can for your retirement, start saving as early as possible, and at a minimum, contribute up to your employer’s match in your 401(k) plan. The changes in employer-sponsored retirement plans over the years have shifted the burden of retirement savings from the employer to the employees, leaving your retirement in your own hands. Knowing that retirement savings involve a long-term perspective, don’t miss out on any opportunities for your money to work for you and grow over time.
Questions and/or interested in how this applies to your financial life?
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