Get A Million in Your 401(k)!
Hello Money Masters!
Did the word “millionaire” catch your eye? I have great news: the number of 401(k) millionaires is increasing and YOU could be one of them! YES, you!
Of course, you must be willing to do your part. But I know my Money Masters are extremely hard working! Your becoming a 401(k) millionaire will depend on several factors.
ROAD TO RICHE$:
Know what to save
Ideally, once you begin your career as a young adult, you would take advantage of the retirement programs that your employer offers and be able to sock away a pretty good amount before buying a home and starting a family, etc. I said “ideally”. 😉 To my younger Money Masters, heed this advice now. Even if your employer does not offer a savings plan, you are still at an advantage to allocate extra funds to your retirement savings. Don’t be afraid to ask your employer about the possibility of starting a program such as this. If you are on your own, talk to your financial institution.
Some of you have already been saving, but if you haven’t begun yet, don’t panic. It is never too late. However, depending on your age and when you plan on retiring, you may need to make up for time by increasing the amount and/or frequency you save. Remember, because of inflation, a dollar’s worth decreases each year.
Most employers have payroll set either bi-weekly or even monthly. This doesn’t mean that you can ONLY save 1-2 times per month. Whereas, you probably will not be able to contribute to your work’s account outside of the payroll schedule, you can open other accounts elsewhere for saving extra money. Save as OFTEN as you can!
What to save:
When you set up your 401(k) you choose the amount that is saved from your paycheck. When possible, choose as much as you can afford. It is adjustable, but there may be limits as to how many times per year you can change your contributions. Also, make sure you check if your employer offers a match. Some employers can match your contributions dollar for dollar, a percentage of your contributions, or a combination of the two. You don’t want to turn away free money!
Becoming a 401(k) millionaire is possible if you know the proper steps to take and remain diligent and observant. Review your statements when you receive them and adjust accordingly, if possible. Whenever you have extra money at your disposal, and you think about splurging, I encourage you to picture yourself as retired. Look to the future and visualize yourself relaxing on the beach or sleeping late on a cold wintery day, instead of getting up early and going to work! 🙂