Sunday, September 7, 2008

Another boring financial post

....but I know how many GenXsters are slacking on their retirement savings.

Play for the match. It's hard to do anything with your money that's better than investing in a 401(k) plan when your employer matches part of your contribution. The most typical match is 50 percent of your contribution up to 6 percent of your salary, meaning that the employer will kick in as much as 3 percent of your salary. If you make $35,000 a year and contribute $2,100 (at $40 a week), your company will add an additional $1,050. That's a 50 percent rate of return on your investment, before you even invest. A true no-brainer. Force yourself to do that by signing up for an automatic paycheck deduction. You won't miss what you never see.

No comments: