Why You Should Have A 401k With Your Job, Even If You Hate Your Job.

Having a 401k is one of the most popular ways to invest your money that gets deducted from your paycheck if you sign up for it. I recommend to sign up for one if your company does a company match. If so, match the percentage that the company will match for, so within a year later, you will match with the company and it will be additional money given to have more invested in. For example, If your company does a match of 5% after a year, contribute 5% into the 401k for the first year. Remember having a 401k is for retirement and you cannot be withdrawn until retirement age unless you need it for a desire emgernycy

It is a great way to invest long-term especially when a company is matching back a certain percent. You can also increase the contribution to your company’s 401k in the future if you so desire. If you ever leave a company to work for another one full-time you can roll-over the 401k you originally have and transfer it to a new one. The compound interest adds up throughout the years.  starting off, the gains can appear small. But over the long term, you can see exponential results depending on your investing preference and the overall outlook of the financial markets.

In 2019, the basic employee contribution limit for 2019 is $19,000, up from $18,500 in 2018. The $19,000 limit includes all elective employee salary deferrals, as well as any after-tax contributions made to a designated Roth account within your 401(k).

The benefit of having a 401k is that you can contribute more money than a Roth IRA. Which a Roth IRA max is up to $5,550 but it will go up to $6000 starting in 2019. Attempt to max out both the 401k and Roth IRA if possible depending on your financial situation. Do whatever it takes to invest in yourself to build a financial future for yourself. The best time to invest in yourself is now.



Leave a Reply

Your email address will not be published. Required fields are marked *