While a 401(k) is one of the most popular ways to save for retirement, there are still not enough people using them. In fact, the number of people that have the option of a 401(k) but choose not to participate may shock you. According to data from the Census Bureau, 79% of Americans have a choice to fund a 401(k) through their employer, but only 41% opt to participate, and that’s a shame because 401(k) accounts make it easy to save and earn compound interest.
Because we want to see you save money and retire comfortably, we’ve compiled a list of reasons to start a 401(k). If your employer offers a 401(k) plan and you are trying to decide whether or not to join, consider these important points:
1. Saving is automatic. Your contributions are automatically deducted from each of your paychecks so you save regularly and can learn to adjust your budget to accommodate the savings.
2. It’s a wise investment. Your money is invested in funds that are researched by the plan manager so that investment risk is reduced. You can choose which funds within the plan you want to invest your money in or your plan manager can make the investment choices for you.
3. Save on taxes. Your plan contributions are made before taxes are taken out of your paycheck, so you don’t have to pay income tax on your contributions until the money is withdrawn at retirement. Since you will probably be in a lower tax bracket when you retire, you will save more money on taxes when you withdraw the money.
buy generic sildenafil Couples who have lack of compatibility in love making due to the ever increasing stress and anxiety in life. Even the older age group people of both genders who have adopted the unhealthy lifestyle of deeprootsmag.org viagra sans prescription modern age too suffer from such problem. It is not advised to clean them by means of an electronically operated dishwasher on cheapest line viagra a regular basis. If you have never tried an online pharmacy definitely you have to try it once so that you can resume living buying cialis cheap an exciting sex life.
4. You can adjust easily. You can choose how much money you want to contribute to your 401(k) plan based on how much you feel you can afford. You can also change the amount of your contribution as your finances change. There is a maximum amount that you are allowed to contribute each year, but this maximum amount is quite generous and increases periodically.
5. Free money. Many employers match a certain percentage of an employee’s contribution to a 401(k) plan. For example, you might contribute 10% of your wages to your 401(k) plan, and your employer might match the entire 10%. For another example, your employer may match your first 1% and half of the next 4%. Employer matches will change from employer to employer so find out what your employer offers.
6. It goes with you. If you should change jobs, your money in your 401(k) plan can be rolled over to your new employer’s 401(k). Changing jobs doesn’t mean you must cash in or lose your 401(k) plan.