Double your money and plan on your 401(k)
I recently have written a new article for the magazine edition of BizKid$. I have posted the article below.
Q: What are automatic 401(k) deductions?
A: An automatic 401(k) deduction is: When you get a job, and before you collect your paycheck and pay your taxes, your employer puts a certain amount of money in an investment account for you, so you can have it when you retire. The advantage to this method is that you get to do it with pretax dollars, and not only that, most of the time, your employer will match your contribution. So if you put in $100, your employer will add $100, so you have just doubled your money! The disadvantage is that you have to invest it, so you may have to put in quite a bit of time so you can choose your investments wisely, but if you do that, the 401(k) plan will become a wealth building tool for you.