Make Funding Your 401k Plan a Top Priority

A 401k is a necessity – not a luxury – because Social Security simply will not cover all of your bills. Since you may live well into your nineties, it’s essential to think about how you’ll pay for your golden years.

Because automatic payroll deduction simplifies the entire process, you won’t even have to think about contributing to your 401k once you set it up. A conventional 401k uses your pre-tax dollars, so you’ll owe less in taxes than you normally would at the end of the year. It’s a total win-win for you.

A Roth 401k is another option, which uses post-tax dollars. By paying taxes up front, you won’t have to worry about possibly paying higher taxes later on. However, this does not reduce your taxable income, so it’s not necessarily the most affordable option for the average American.

With Social Security bottoming out and the usual inflation that occurs with time, you have to act immediately for the effects of compounding to be on your side. Remember, you are in control of how much you put in your 401k, so you can start with even a small amount. The key is to just get started so that you can have the peace of mind that comes with a well-funded 401k.

Subscribe for newsletters &
Get Latest Updates & Offers

Stay
Connected