In this economy (or in any economy, for that matter!), none of us can afford to leave “free” money on the table. So why -- and how -- are so many Americans giving away free money?
According to an article in the November 2011 edition of Financial Planning magazine, FINRA recently issued an investor alert urging approximately 30% of American workers who are not contributing enough to their 401(k) plans to receive their full employer match. Failing to take advantage of this match compromises these workers’ ability to step-up their contributions and to potentially increase their eventually retirement savings. One of the most common employer 401(k) matches is a dollar-for-dollar match of up to 3% of an employee’s salary.
While most of us will need to save much more than the 3% that may be matched to fund a successful retirement, it makes sense for all of us to do at least the minimum amount needed to get the “free” matching funds.
Make sure your 401(k) contributions are set-up for 2012!! Once you’ve taken the first step to start saving (and getting a no cost boost from your employer), meet with a financial advisor to form a strategy for saving additional funds to meet your future retirement goals.