Investing in a 401K is the best way to secure your future and have a snug retirement plan in place for when you stop working. Each year a report on How America Saves is released by Vanguard. According to their latest research, Americans save an average of 7% in their employer retirement plan. For most workers, that will not be enough to support a healthy retirement income. And there are still about 32% of workers that have not elected to begin saving at all in their employer plan. Even though the economy is still not what it used to be, investing in your plan is the best way to secure your future.
Experts suggest that you keep on investing in your 401K account because any amount of social security you may get will not be able to cover your bills with today’s rising costs. It is also speculated that Social Security benefits will start running out in the near future so a 401K will make a great little nest egg for when you retire.
You don’t want to set your goals based on what is going on in the here and now. You need to set long term goals, because that is what your long term investment is all about.
This is a sound investment and you need to treat it as one; that means avoiding early withdrawals, because you are going into the money for your future. When you withdraw early you forfeit tax-free compounding features that are a benefit of this type of retirement nest egg.
Many people are bad about living in the here and now, never thinking about tomorrow. Investing in a 401K plan, and keeping up with that investment, is an easy thing to do. If you have the option then it only makes sense to take it. Your future and the future of your family may very well depend on it, in these harsh economic times. Contact your employer today to see if they offer 401K.
How about you? Have you taken advantage of your employer’s retirement plan options?