O/T: 401(k) contribution increase
- Thread starter nancy324
- Start date
nancy324
Cathlete
Hi Donna,
I'm not a benefits manager; I'm a trusts and estates attorney. I help people with their estate planning and administer decedent's estates. Most people these days have more retirement assets than anything else, with the possible exception of real estate, so I've learned about retirement assets over the years.
Even if you can't afford to meet the maximums for your 401(k), and even if you just contribute a little bit, it is amazing how your money will grow tax-deferred in a 401(k) over the years. There is nothing else that even comes close as a savings vehicle. At the very least, I believe that everyone should contribute enough to obtain their employer's matching contribution. It is essentially free money that will grow tax-deferred, and the younger you are, the more it will grow.
I think it's particulary important for women to take advantage of this opportunity, because we, as a group, have a tendency to neglect our financial well-being.
Okay, I'm climbing off my soapbox now, (but still happy to answer questions!
)
-Nancy
I'm not a benefits manager; I'm a trusts and estates attorney. I help people with their estate planning and administer decedent's estates. Most people these days have more retirement assets than anything else, with the possible exception of real estate, so I've learned about retirement assets over the years.
Even if you can't afford to meet the maximums for your 401(k), and even if you just contribute a little bit, it is amazing how your money will grow tax-deferred in a 401(k) over the years. There is nothing else that even comes close as a savings vehicle. At the very least, I believe that everyone should contribute enough to obtain their employer's matching contribution. It is essentially free money that will grow tax-deferred, and the younger you are, the more it will grow.
I think it's particulary important for women to take advantage of this opportunity, because we, as a group, have a tendency to neglect our financial well-being.
Okay, I'm climbing off my soapbox now, (but still happy to answer questions!
)-Nancy
dss62467
Cathlete
Oh yeah, I know...I used to be the person handling the 401(k) at my last job. I was like the 401(k) police. "WHY AREN'T YOU CONTRIBUTING?!????" Unfortunately now, I'm one of those who is not. With the cost of daycare and saving for college, 401(k) has been put on the back burner. Since my daughter starts kindergarten in September, I'm planning on getting back in for the 4th quarter of this year and will go as high as possible to make up for my 3 years out of it. Might actually have to wait until the 1st quarter next year, since I have to bring down the debt.