Shelton 401(k) Pro-Tip #19: Save Now or Forever Hold Your Peace

A 401(k) plan for most is an easy way to save for retirement, if for no other reason that the money is taken from your paycheck before you have a chance to spend it. If your employer offers a 401(k) plan, consider signing up for it! Since the program was introduced in 1978, millions of people have benefited from a 401(k) plan.

Yet, excuses abound as to why many people do not save for the future. Some say they do not make enough money to save, which is understandable if true. Still, others say they would rather live for today and deal with the future. While some of these people are probably planning to fund their retirement with cash savings, it is pretty safe to say the rest are avoiding the subject altogether.

Because a 401(k) plan is a feature of a qualified profit-sharing plan, participating employees can choose to make rational contributions to their retirement account. The employee, in other words, determines to a great degree how much there will be in his or her account upon retirement.

We know that the 401(k) plan comes with multiple benefits, including:

• Tax Advantages,
• Matching Contributions,
• Contribution Flexibility, and

Many people live long and healthy lives only to run out of money while they are still fairly young. For every person who convinces themselves they do not need to contribute to a retirement plan, there is likely one wishing they had done things differently.

Bottom line: Consider investing in a retirement plan as if you might live a long time. Because, chances are, you will.