5 Tips to Plug Leaks Draining Your 401(k)

A little TLC can result in thousands of extra dollars down the road

      View All  

Are You Getting the Full Match?

easy money road sign 300x199 5 Tips to Plug Leaks Draining Your 401(k)Start by making sure you are taking advantage of the full match your employer offers. It’s free money — as long as you take the initiative to ask for it.

The rules differ for every employer, but the bottom line is to take what’s offered. If your company offers 100% on the first 3% of your pay you contribute, set aside 3%. If your company offers a 50% match on the first 6%, take all 6%.

You might be reluctant to “reduce your salary,” but this is the wrong way of thinking. In truth, you actually are giving yourself a raise. Yes, if you make $50,000 annually, a 6% contribution moves $3,000 of spending money each year into your 401k. But don’t forget that your employer will be giving you an extra $1,500 above your salary with that aforementioned 50% match.

You have to save for retirement anyway, so why say no to an extra $1,500?


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/5-tips-to-plug-leaks-draining-your-401k/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.