If you have a 401(k) retirement plan at work, contribute to it. As much as you can, as soon as you can.
Time is wasting.
USA Today reports that as many as a third of employees eligible for the plans do not join. And many others do not pay in enough to obtain the full company match.
Old-style, lifetime-income pension plans are being discontinued or frozen. It could be a very cold, dismal world for tens of millions of Americans who don't look 30, 40, even 50 years ahead.
You get an immediate tax break for every dollar (up to the maximum allowed) you put in to a 401(k); so, in effect, it costs less than a dollar to invest a dollar. When the money comes out, there's every chance you'll be in a lower tax bracket.
Any financial manager worth his salt will tell you the 401(k) is one of the best deals around. Supplement that with a personal, tax-advantaged IRA, and you're well on your way.
Younger workers and those on the lower ends of the pay scale are the least likely to take full advantage of the 401(k). But it is an offense against common sense and self-reliance to put off what must be done today.
Indeed, investing contains risk. But the worse risk is to save nothing. Then you don't have a chance.
With a solid commitment to planning ahead, the miracle of compounding should set up a comfortable retirement.
Just do it.
