Nearly 66% of Savers Are Making This Smart 401(k) Move
Now the good news is that last year, nearly two-thirds of 401(k) participants contributed enough money to get their full employer match, according to data from Vanguard. On the flip side, this means that roughly one-third of workers failed to capitalize on that match, and lost out on money as a result. And that's a mistake that they -- and you -- should not repeat.
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What can a 401(k) match do you for?
At first glance, it may seem like forgoing an employer match isn't all that big a deal. Imagine your company is willing to match up to 3% of your salary, and you earn
Furthermore, anytime you give up an employer match, you also lose out on whatever growth that money can achieve. So let's imagine you pass up a
Now let's take things one step further. Imagine that instead of giving up
You must get that match
You might not manage to max out your 401(k) at any point during your career, or even get close, but what you should absolutely aim to do is contribute enough each year to snag your employer match. So if that's not your plan at present, change it. Unload some expenses to free up more cash in your budget, or get a side gig on top of your regular job and use its proceeds to fund your 401(k). Furthermore, always make a point of saving your raises, as well as any bonuses that come your way.
Giving up free money is a downright crazy thing to do -- so don't. Figure out how much you need to contribute to get your company match in full, and take steps to make that feasible. Last year, almost 66% of 401(k) participants got the total match they were entitled to, and if you play your cards right this year, you can do the same.
The
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "
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