3.
“Take advantage of an employer-sponsored 401(k) plan. Most plans offer a “match,” which is basically money your employer adds to your account for free. Always put in more than your company matches. If your company matches the first 5%, put in at least 5%. You won’t be taxed on the money you put in until you withdraw it when you leave, so your payroll taxes will be lower. There are usually rules about when the matched money becomes yours (vesting schedule), but pay attention to that date if you’re considering changing jobs. I’ve seen people lose thousands of dollars because they left jobs 3 or 6 months before vesting or at least milestones.”
“If you’re changing jobs, don’t take the money out and let it go to waste. Taxes and penalties aside, those few thousand dollars (that weren’t in your pocket to begin with) will add up to big money down the line. And the older you are, the faster time flies…”
—Anonymous, 49, Missouri
