Clicky

LATEST
The Best Car Research Websites US Cities With the Fastest Rising Property Values Online Scams to Watch Out for in 2015 The Most Expensive Divorces in History What are the Poorest Cities in America? The Best Home Mortgage Loan Websites The Best Crowd Funding Websites The Best Mobile Apps For Your Personal Finances Does Shopping at Costco Really Save You Money? Practical Tips to Save Money on Gas Can Coinstar Turn Your Loose Change Into Big Cash? How To Resolve Paypal Disputes Are You Losing To Hidden Cell Phone Fees? Tax Deductions You May Not Know About How Much Money Will You Need In Retirment? How Much Life Insurance Is Enough? Are You A Victim Of Hidden Bank Fees? The Right Way To Ask For A Raise Which DIY Tax Program Is Right For You? Banks Giving New Accounts Great Deals In 2015 How To Deal With Debt Collectors High Paying Jobs With Labor Shortages In 2015 3 Tips to Save Money on Your Next Car Loan 5 Tips to Save Money on Health Insurance Should You Consolidate Credit Card Debt? Do You Have Unclaimed Property? Tips On Applying For A Small Business Loan What Is A Vantage Score And Why Is It Important? What Is A FICO Score And Why Is It Important? Tips On Creating An Emergency Fund Are Opening Store Credit Cards A Good Financial Decision? Tips To Help You Repair Your Bad Credit Is A Debt Consolidation Loan Right For You? Tips To Manage Student Loan Debt Tips On Finding The Best Deals On Cyber Monday Tips On Finding The Best Deals On Black Friday How To Save Money On Holiday Travel What Is Payoneer? What Is Apple Pay? What Is Escrow.com? What Is Neteller? What Is Skrill? What Is Amazon Payments? What Is Google Wallet? What Is Square? What Is An IRA And Should I Invest In Them? What Is A Mutual Fund And Should I Invest In Them? What Is A 401k And Should I Invest In Them? What Are Stock Options And Should I Invest In Them? Are You Properly Planning For Your Retirement? What’s The Difference Between PayPal vs. Amazon Payments? What’s The Difference Between PayPal vs. Western Union? What’s The Difference between PayPal vs. Google Wallet? What’s The Difference Between PayPal vs. Square? What’s The Difference Between A Wire Transfer vs. Western Union? What’s The Difference Between A Wire Transfer vs. PayPal? What’s The Difference Between A Wire Transfer vs. Bank Transfer? What Are The Best Places To Find Coupons Online? Can Owning A Hybrid/Electric Car Save You Money? Are Municipal Bonds The Right Investment For You? What Are The 5 Best US States To Start A Small Business? What Are The 5 Best US States Currently For Job Openings? Should You Consider Opening A Swiss Bank Account? How To Choose The Right Life Insurance Policy For You Are Homes In Foreclosure Good Investments? What Should You Look For When Choosing A Stock Brokerage Firm? What Should You Look For In A Retirement IRA? When Is Filing For Bankruptcy The Right Choice? Credit Cards With The Best Perks And Rewards Programs What Should You Look for When Choosing the Right Bank? Should You Consider Investing in the Forex Market? Do You Need a Financial Adviser? What Is A Reverse Mortgage, And Should You Consider It? Simple Tips To Manage Your Credit Card Debt Should You Buy Or Lease Your Next Car? Are Short-Term Payday Loans Right For You? 5 Ways You Can Improve Your Credit Score Are Penny Stocks A Good Investment? What Are The Benefits Of Investing In Precious Metals? What Is A Dogecoin And Are They A Good Investment? What Should You Look For In A Credit Card? Are You Ready To Buy A Home? Tips To Avoid Identity Theft The Phishing Scam The Rental Listing Scam Are Wire Transfers Safe? What is a Wire Transfer? Are Bitcoins Safe to Use? What are Bitcoins? Is Paypal Safe? What is Paypal? The Lottery Scam The Nigerian Scam (419) Is Sending Money with Western Union Safe? Incredibly Easy Ways of Sending Money with Western Union Everything You Need to Know about Western Union Western Union VS MoneyGram: Which Should You Use When Sending a Money Transfer? A Closer Look at MoneyGram Where Can I Send a MoneyGram? The Dangers of Sending Money Online: 7 Very Popular Internet Scams

Moneygram

What Is A 401k And Should I Invest In Them?

401k
October 4th, 2014

Let’s say you have just started a new job, you sit down to fill out paperwork and you pick up the benefits folder and you read something about a 401k.
 
What is a 401K? In simple terms it is a financial plan that allows you to put money away for your retirement. Our parents called this a pension; this is an updated version of that. Your future happiness depends on your 401K and you should treat it very importantly, as you probably won’t be able to collect that much from social security and shouldn’t depend on it.
 
The way the 401k works is this:  When you enroll, you commit to having a percentage of your compensation deducted from each pay check and deposited into a special account. You are then able to invest these finances in a variety of mutual funds. Your weekly contributions and earnings will continue to grow and a tax deffered basis which means you won’t be taxed on any of this money unless you withdraw money from your 401k.
 
As far as withdrawing money, you should think very seriously before ever considering doing so. You can take money out early but it will cost you dearly. Once you make a withdrawal, you are then taxed on the money. A more prudent way to do this would be to take out a loan against your 401k then paying that back plus interest. Keep in mind though; this should only be done in an emergency situation, not to finance a fancy vacation! If you are fortunate, your company will match all or part of your contributions to your 401k. This will allow the fund to grow a lot faster. For example let’s say your company matches twenty five percent of your contributions. This means for every hundred dollars you contribute they will contribute twenty five dollars. It’s kind of like free money.
 
Most companies will invest in the mutual funds for you, but some may offer you a choice in which funds you wish to invest in.  If this is the case, it would not be a bad idea to run the plan by a competent financial advisor who should be more versed in the various mutual funds offered than you are.  Always make informed financial decisions whenever possible.
 
If your company offers to do this, it is strongly advised that you take full advantage of it. Another benefit of 401k plans is that they are portable; meaning that if you leave a company you can take it with you. It will never stay at that company. A new employer should be able to roll your existing 401k into a new plan or into an IRA. With either scenario, you still won’t have to pay taxes on your money until you withdraw the funds.
 
Should you invest in a 401k? If you plan on living comfortably after you retire and having your financial needs met, it is absolutely essential that you invest in a 401k.


This author has no description available.

Browse Our Website

Latest From The Money Blog

The Best Car Research Websites

The Best Car Research Websites

Instead of going to a dealership for a new car or checking various used car sellers, you can now fin[...]
US Cities With the Fastest Rising Property Values

US Cities With the Fastest Rising Property Values

Smart investors know that buying property in a thriving city is a good idea. But the prices of house[...]
Online Scams to Watch Out for in 2015

Online Scams to Watch Out for in 2015

“There’s a sucker born every minute” was Barnum’s perspective on life and business and he was right.[...]
The Most Expensive Divorces in History

The Most Expensive Divorces in History

A divorce is a relatively simple legal procedure but if it is between a couple with a net worth mill[...]
What are the Poorest Cities in America?

What are the Poorest Cities in America?

Many cities in the U.S. have never really recovered from the debt carnage that was unleashed on them[...]


https://suretrader.com

All Money Sending Tips Articles