Phil's Personal Finance Tip of the Day:
The Math Behind Why You Should Contribute to a Matched Retirement Plan
By Steven Orlowski | TheStreet.com
NEW YORK (MainStreet)—Don't Turn Your Back Free Money
Everybody likes to get free stuff, right? But who in their right mind would turn down money for nothing?
O.K., technically it's not for nothing (you need to be employed to get it), but for many U.S. workers "free money" is available through their employer sponsored retirement plans.
Unfortunately many employees, and frequently younger ones, do not take advantage of their retirement plans and therefore say no to what amounts to an increase in pay.
How to Master a 401(k) and Roth IRA at the Same Time
You see, younger workers sometimes think that retirement planning can wait until they are older. But it's a mathematical truism that the best time to start saving is when you're young...
...and the younger the better.
Now, if you're planning on being the next Mark Zuckerberg then maybe you don't need to read the rest of this article...but most of us will not be like Zuck.
However, you can get rich. And one way to make sure you do is to start saving early, save a lot and take advantage of your employer's retirement plan matching contributions.
Sign-up Yesterday
Most of us will not retire with an old-school defined benefit pension. You know the kind. You retire after working for the same company for 25 years and a deposit magically hits your checking account every week for as long as you live.
To read the entire article from Steven Orlowski | TheStreet.com:
http://finance.yahoo.com/news/math-behind-why-contribute-matched-120400763.html
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