Compound and Grow Your Employer Matching Retirement Plan Fallon NV
Areas of Specialization
Comprehensive Financial Planning, General Financial Planning
Mon-Sat 10:00 AM-07:00 PM
Sun 10:00 AM-05:00 PM
Vannoy Advisory Group, Inc.
Las Vegas, NV
Retirement Plan Investment Advice, Advising Employee Benefit Plan Participants, Planning Issues for Business Owners, Advising Medical Professionals, Newlyweds & Novice Investors
NAPFA Registered Financial Advisor, CFP®
Kirby Group, Inc.
Ongoing Investment Management, Retirement Planning & Distribution Rules
NAPFA Registered Financial Advisor, CFP®, MS
Schultz Financial Group, Inc.
Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, High Net Worth Client Needs, Ongoing Investment Management, Alternative or Private Investments, Real Estate Investments
NAPFA Registered Financial Advisor, BS, CFP®, MBA
Mon-Fri 08:00 AM-06:00 PM
Sat 09:00 AM-04:00 PM
Banking Center Services: Change Order, Commercial Deposits
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Sparrow Wealth Management
Helping Clients Identify & Achieve Goals, High Net Worth Client Needs, Planning Concerns for Corporate Executives, Advising Entrepreneurs, Professional Athletes or Entertainers, Planning Issues for Business Owners
NAPFA Registered Financial Advisor, BS, CFP®
Hollen Financial Planning, Ltd.
Ongoing Investment Management
NAPFA Registered Financial Advisor, CFP®
North Lake Tahoe Financial Services, LLC
Incline Village, NV
College/Education Planning, Advising Employee Benefit Plan Participants, Middle Income Client Needs, Real Estate Investments, Retirement Planning & Distribution Rules, Tax Planning
NAPFA Registered Financial Advisor, ATP, CFP®, EA
Compound and Grow Your Employer Matching Retirement Plan
|Saving for Retirement: Compound and Grow Your Employer Matching Retirement Plan |
By James Lange
Jun 13, 2007, 16:20
If your employer offers a matching contribution to your retirement plan, the cardinal rule is: contribute whatever the employer is willing to match even if it is only a percentage of your contribution and not a dollar for dollar match.
Imagine depositing $1,000 of your money into the bank, but instead of getting a crummy toaster, you receive an extra $1,000 to go along with your deposit. To add to the fun, imagine getting a tax deduction for your deposit and not having to pay tax on your gift. Furthermore, both your $1,000 and the gift $1,000 grow (it is to be hoped), and you don t have to pay income tax on the interest, dividends, capital gains, or the appreciation until you withdraw the money. When you withdraw the money, you will have to pay taxes, but you will have gained interest, dividends, and appreciation in the meantime. That is what employer matching contributions to retirement plans are all about. If the employer matches the employee contribution, it offers a 100% return on the investment in one day (assuming no early withdrawal penalties apply and the matched funds are fully vested).
Over the years, I have heard hundreds of excuses for not taking advantage of an employer-matching plan. All those reasons can be summarized in two words: ignorance and neglect. If you didn t know that before, you know now. If you are not currently taking advantage of your employer-matching plan, run don t walk to your plan administrator and begin the paperwork to take advantage of the employer match. Matching contributions are most commonly found within Section 401k, 403b, and 457 plans. Even if your employer is only willing to make a partial match up to a cap, you should still take advantage of this opportunity. A fairly common agreement is that the employer will contribute 50 cents for every dollar up to the first 6 percent of salary you contribute. Don t grouse that it is not enough or not worth it. You have everything to gain this is free money that will compound and grow and as Einstein said, The most powerful force in the universe is compound interest.
As one of the country s top IRA experts, James Lange has developed tax-savvy retirement and estate plans for over 1400 U.S. citizens with appreciable assets in their IRAs and 401(k) plans. In his book, ...