Should I be investing in my 401(k)?

What are the pros and cons of investing before/after tax dollars into a 401(k)?

Investing, 401(k)
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October 2016

I have heard this many times and it has never made sense. The idea is if your employer matches 3% of your salary, then you (the employee) should only contribute 3% to your 401(k). I guess at a gut check level this might make sense, after all “why should I put in more than The Man?” But, this completely disregards the tax savings of contributions. The tax savings are significant even for modest income earners.

Besides, there may be no easier way to save. It is automatic and the impact on your take home pay is much less than the dollars saved. For those who have difficulty saving, this is often the first place we look. Our suggestion (regardless of matching contributions) is to put in as much as you can afford, plus a little more, up to the maximum.

October 2016
October 2016
October 2016
October 2016