Here’s what the average 401(k) plan does: Moves a chunk of your paycheck — before you can touch the cash — into a specially designated account. In this account, your money may:
1. be invested in diversified investments such as mutual funds
2. be matched by your employer up to a certain point
3. grow tax free
4. form a foundation for a better retirement
5. provide a safety net in extreme circumstances
Meanwhile, your current contributions lower this year’s taxable income.
Do it or don’t?
Do it again and again.
And if your employer is one of the too many that doesn’t offer any kind of retirement plan, find out why. Or find a new employer.