Don’t expect too much from your 401k Plan. It’s not a get rich quick scheme, but a way to save for your retirement. Yes, it’s nice to collect 7 to 10% on your money, but if not, so what?
If you think getting a huge return on your investment is the only way that your 401k will work, you’re missing the point. It’s there to provide financial stability for you when you retire. Every dollar you put in there is one you can’t spend now on (usually) frivolous things.
John Norris of the Montgomery Advertiser breaks it down here. If you put 5% of a $50,000.00 per year salary into a 401k, after taxes that would be about $83.33 per week (based on a bimonthly paycheck). Do you have the resolve to save/invest that money? Like many of us, probably not, so why not invest in a 401k?
Norris sums it up best saying, “I have never met anyone who was rich only because they bought a few penny stocks and hit a home run or two — never. On the flip side, just about every rich person I know has saved and participated in their company’s retirement plan”.
Still have doubts? Contact one of the tax experts at the IRA Financial Group now.