Why Missing This 1 Thing Will Cripple You Financially

If you don’t have this you are putting your savings and your retirement in jeopardy. This is especially true for 20 and 30 year-olds. You need to get your finances in check and the first way to do it is with a 401k.

What is a 401K?

A 401k is a plan where you save your money for your retirement. The money you put into the 401k is matched by your employer up to a certain percentage of your salary( the percentage differs depending on your employer). Matching is when you put a certain amount of money into your account and your employer will put the same amount you did. For example, If you put $500 into your account, your employer will match the $500 making the total contribution $1000 which is a 200% return on your original investment. The benefits of a 401k are that you can choose between not paying taxes on that money until you take the money out of that account starting at the age of 59. With a roth 401k, it is a similar employee-contribution plan, but you pay taxes on the money you put in now so when you eventually take it out, all the money that grew in that account is not taxed.

Why does missing

Only 56% of Americans contribute to a 401k CBS News

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