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Why Your 401(k) Match Should Be a Big Priority
Consider this simplified example. Let’s say you earn $75,000 per year, and your employer is willing to match all your contributions, dollar-for-dollar, up to 6% of your salary. If you take full advantage and contribute 6% of your salary, or $4,500, your account will receive a double deposit of $9,000. Over 35 years, this contribution rate could result in a nest egg of $1.7 million, compared to around $850,000 without the match. While your salary may vary over the years, it’s evident that the employer match can significantly impact your financial well-being in retirement.
On the contrary, suppose you choose to contribute only 4% to your 401(k) to increase your take-home pay. This decision would put an additional $1,500 into your paychecks (also increasing your taxable income) but would mean $3,000 less going into your retirement account. Consequently, your nest egg after 35 years would be roughly half a million dollars less compared to fully leveraging the employer match.
The $22,924 Social Security Bonus Most Retirees Overlook
Many Americans find themselves lagging behind in retirement savings. However, uncovering a few lesser-known “Social Security secrets” could potentially enhance your retirement income. For instance, a simple strategy could yield an extra $22,924 annually. By mastering techniques to maximize your Social Security benefits, you could retire with confidence, enjoying the peace of mind we all strive for. To explore these strategies further, click here to learn more about the “Social Security secrets.”
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