Don't make this 'huge mistake' with your 401(k), says one expert via CNBCMakeIt
But even if there are aspects of a 401 that confuse you, or you can't invest a lot right now, there's one thing you should always try to do with this type of account: Make the most of any employer match.Any money you put in your 401 goes straight from your pay before taxes are applied, so it reduces your taxable income. And your contributions are automatically deducted, so you won't be tempted to spend them.
401s are also great because so many employers offer matching programs, and Sethi says not enough people take advantage of that perk.you do to your 401, up to a certain point. For example, if you put 5% of your salary into your 401, your employer may also contribute 5%, depending on the type of program. The median matching level is 4% among
"That's your company literally saying: 'Hey, here's some free money, do you want to take it?'" Sethi tells CNBC Make It. "If you don't take that, you're making a huge mistake."Not sure if your company offers this perk? Ask your supervisor or your HR manager. "It's OK to ask if you don't know," he says. "It's totally fine."
If the answer is yes, then go ahead and max out that 401 match if possible. "That turns out to be worth a huge amount of money," Sethi says.Getting your financial life in order starts with your retirement accounts. So
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
The Inventor of the 401(k) Thinks It Has Gone AwryTed Benna, inventor of the 401(k) says the investment structure of the retirement plan is too complex
और पढो »
Your 401(k) just got a big boostA tax-deductible contribution is one of the few remaining ways to reduce taxable income if you don’t itemize.
और पढो »
Expert advocates using 401(k) savings to fatten Social Security checksToday's retirees have high debts and low savings. Nobel laureate Richard Thaler thinks buying into an annuity-type program through the Social Security Administration can help solve that. But other experts are not so sure.
और पढो »
The path to becoming a 401(k) millionaire is easier than you might thinkOnly about 1% of the 30 million or so people who contribute to their Fidelity retirement account have managed to save at least $1 million. The average 401(k)...
और पढो »
A Roth 401(k) offers tax advantages. Here's how it worksWhen you contribute to a Roth 401(k), the contribution won't lower your taxable income today. But when you eventually take the money out, similar to a Roth IRA, it's completely and utterly tax-free.
और पढो »
1 in 4 young people dip into 401(k)s to pay off debt—here's why that's a problem'It may seem like a really good idea ... but it likely has real, significant, long-term implications.'
और पढो »
Nobel laureate advocates using 401(k)s to get a bigger Social Security check. Others aren't so sure.Today's retirees have high debts and low savings. Nobel laureate Richard Thaler thinks buying into an annuity-type program through the Social Security Administration can help solve that. But other experts are not so sure.
और पढो »
Fund your 401(k) first, says the author of 'I Will Teach You To Be Rich'—here's whyFund your 401(k) first, says the author of 'I Will Teach You To Be Rich'—here's why via CNBCMakeIt
और पढो »
White House Counsel Don McGahn subpoenaed in aftermath of Mueller report findingsThe chairman of the House Judiciary Committee has subpoenaed former White House Counsel Don McGahn for testimony following the release of the report from special counsel Robert S. Mueller III.
और पढो »
House panel issues subpoena to former White House counselThe House Judiciary Committee has served former White House counsel Don McGahn with a subpoena as part of its investigation into obstruction of justice, a move to bring in a key player with direct knowledge about President Donald Trump's efforts to undermine the Russia probe, according to a source familiar with the discussion.
और पढो »