How to Maximize Your 401k Employer Matching

If your job offers 401k employer matching then you are getting an immediate 100% return on your money. This kind of return is unlike anything you will find at your local bank or brokerage house. This is something that you should take advantage of and use it to maximize your savings

Save the Maximum

Elect to have the maximum deduction withheld from your paycheck and funneled into your 401k plan. If your employer will match up to 6 percent of you salary, then save 6 percent of your salary. You may not want to save more since you might be better off in a ROTH or other plan. But always save up to the amount your employer will match since that is free money being offered to you.

Invest Well

Now that you are saving a portion of every paycheck, make it work for you. If you are in your twenties and thirties, you should be in aggressive funds. Most of your portfolio should be stocks. The closer your get to retirement age, you want less in stocks and more in mutual funds, bonds and money market accounts.

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