Ten Tips for a Prosperous 2006 - and Beyond

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Ten Tips for a Prosperous 2006 - and Beyond

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Warning: There are no hot stock tips in this article. And there are no "get rich in 2006" ideas. That's because I'm not just interested in the year ahead. My goal is to give you so

Monday, December 19, 2005

Warning: There are no hot stock tips in this article. And there are no "get rich in 2006" ideas. That's because I'm not just interested in the year ahead. My goal is to give you sound financial strategies that will see you through 2006 and happily ever after.

1. Play the Match Game.

More than 20 percent of 401(k) plan participants don't invest enough to get the maximum company matching contribution. That means about one out of every five plan participants is unwisely turning down a bonus.

How much you have to invest to get the employer match -- and how much your employer will match -- varies at each company. A typical setup might be that for every dollar you invest, your boss will kick in 50 cents, up to an annual limit of $1,500. So if you sock away $3,000 each year for your retirement, your employer will add $1,500. That's an immediate 50 percent return on your savings.

Ask your HR department or the plan administrator how much you need to invest to get the maximum company match. Then change your contribution level to qualify for this incredible benefit.



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