Fab & Fru Five Minute Guides!
Based on an article by Women & Co.
Have you started planning for your retirement yet? Looking for quick tips to help you get the most out of your 401(k)? We've partnered up with the fabulous finance experts at Citibank's Women & Co to bring you the Fab & Fru 5 Minute Guides - fast and furious financial cheat sheets on everything money that you need to know NOW! Take 5 Minutes to Take Control of Your Financial Future…
Are You Saving For Retirement?
What is a 401(k) - and why is it so great anyway? 401(k) plans are employer sponsored retirement plans. The beauty is that the money you contribute is deducted from your taxable income - meaning you are taxed on a lower amount than you are actually earning for that year. Plus, your 401(k) contributions are tax deferred - you don't pay taxes on them until you withdraw. Finally, some good news when it comes to the IRS! Here are the key facts to know about your 401(k):
1. Enroll - You've got to be in it to win it. The earlier you enroll, the longer to have to take advantage of compounding interest - see, some things do get better as you age!
2. Max It Out - Not recommended for your credit cards, but you absolutely should max out your contribution to your 401(k) plan every year!
3. Matchy-Matchy - Get up to speed with any matching plans your employer offers. You may have to contribute a certain amount, or work for them a certain amount of time to be eligible for a matching contribution.
4. Look but Don't Touch - Resist the temptation to cash out when changing jobs, or to dip in to your 401(k) before retirement!
5. Stay On It - Setting up your 401(k) is only part of the battle. You - yes - you - need to monitor and review accordingly! Remember to update your beneficiaries as your life changes and to meet once a year with a financial professional to review your 401(k) savings plan.
Thanks to our partners at Women & Co. for the 411 on 401(k)s - and be sure to let us know which topics YOU would like to see Five Minute Guides On!
Read more at Fabandfru.com