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| 9.6 | Money Tip - Take Advantage of the 401K or Other Type of Retirement Account Offered By Your Employer |
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How to create savings by using a 401K or other type of retirement program.
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 | The retirement account or 401K program offered by your employer is the closest thing you can get to free money!
There are three main benefits of a 401K program:
1. Sometimes these accounts are matched by your employer. In this case, they will pay a matching percentage of the amount you contribute. For example, if you give $100, you employer may give $50 or even match your $100. This is free money!
2. Up to a certain percentage, the amount you contribute to the program is taken out of your salary before taxes. This mean that you are not taxed on income that you contribute
(until you withdraw the funds, which might be decades down the road after earning a lot of interest!). Tax Free! More free money!
3. 401K and other types of retirement programs are also an easy way to force yourself to save. They are usually deducted from your check automatically. The money is moved into an account that is difficult to access (this is good if you tend to spend your entire check every month). After a while, you barely notice the deduction, but your retirement account is getting huge!
Ask the human resources department at your work if they offer a 401K or another type of retirement program. If so, sign up today and start getting your free money!
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Further Information
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| Leave a Comment About the Tip: 'Take Advantage of the 401K or Other Type of Retirement Account Offered By Your Employer' |
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| Comments | Showing Comment 1 - 1 of 1 |
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| 1 | 401K is Free Money |
| This is free money. Take it.
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| Comment 1 On:Take Advantage of the 401K or Other Type of Retirement Account Offered By Your Employer
Added On: 2/22/2009 4:23:45 PM |
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