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5 Ways You Can Screw Up Your 401k

Don't mess up a good thing. Stay in the clear with these tips.

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Not Taking Advantage of Matching

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If you saw a $100 bill lying on the ground, you’d pick it up. You’d be a fool not to. It’s free money.

Yet you’d be shocked how many Americans turn down much larger sums by simply failing to contribute enough to their 401k plan to take advantage of the employer matching. For crying out loud, it’s free money.

Whatever your financial situation, you should be able to carve out 3%-5% of your gross pay (which is the usual range for employer matching) to your 401k plan. If you can’t spare 3%-5%, then frankly, you need to re-evaluate your priorities. Because whatever you’re spending that money on probably isn’t worth forgoing a free, instant 100% return.

Seriously, if you need to brown bag your lunch a couple times per week, it’s worth it. Make this a priority.

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Article printed from InvestorPlace Media,

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