Let’s talk about the sexy subject of 401(k)s! Yes, it’s a lousy name (it’s named for a subsection of the IRS code) but a great opportunity to get some free dough.
Think of a 401(k) as a box. Inside that box is some sort of savings account—usually it’s a mutual fund. Every pay day, your employer puts a slice of your pay in there. But then, many employers will match it with some of their own money-- sometimes dollar for dollar-- up to a certain amount.
That is free money!
So, right from the start your account is guaranteed to grow by however much your employer matches. If they match it dollar for dollar, that’ a 100% return right away. You won’t get a deal like that on Wall Street.
On top of that, most 401(k)’s are off limits to the tax man. Or at least until you take the money out which you can only do under certain conditions.
The point is, ask if your employers offers a 401(k) and if they match contributions. If so, you might consider diving on in.
Do us a favor: Tell your friends about us so they can be smarter about their money too.