March 1, 2008

401K...its the right thing to do.

Alot of single parents wonder what they are going to do when its time to retire. We have spent our lives robbing Peter to pay Paul, leaving no money for a Savings account. Im here to tell you, its really not that hard. Everyone can put aside $25.00 dollars from each paycheck, now imagine if your employer matched it. The money really adds up quickly. I started saving into my 401K five years ago, with a company match, I have a nice chunk of change to my name. I just recently switched jobs and unfortunately, I wont be eligible for my new 401K until after 90 days and I have to cash the money out of my old one in 30. My Mom suggested putting it into an IRA account, that way I wont have to pay taxes on it and it will continue to earn interest. Im still a little new to the whole Stocks and Bonds thing but I know at 41, I really need to start thinking about my retirement. And while we are talking about the future, get that extra life insurance your employer offers you. Most companies have life insurance that they give to all employees at their cost but then there is usually a choice to get more if you pay into it. I opted for the $250,000 plan and only have to pay $11.34 a money. Thats nothing. I would hate to think if something happened to me tomorrow, my children would have nothing to take care of them in their time of need. It's all about your future and the future of your family. If your company doesnt offer a 401K, look into putting your money in an IRA. It really isnt that difficult and it makes good money sense.


No Nonsense Girl said...

stopping by to say hello!

You are right, that's a good thing to do.

The Gal Herself said...

This is a great post! My client is an insurance/financial services provider, so I hear and read a lot about this stuff. Only 70% of eligible workers participate in 401k plans, so I hope you were able to reach one of those 30%.

Chuck said...

So funny to see that you're 41. I don't know anybody else but my twin who is my age. Anyway, very good advice you give here. Same stuff I've been told as well. I was really blessed to be able to keep mine in my 401k with no fees because I had a min. of $5k in it. Yippee. Have a nice evening!