Your Company’s 401(k) Plan, Don’t Give Up Free Money!

<span style="font-family:Arial;font-size:12px;">Your Company’s 401(k) Plan, Don’t Give Up Free Money!<p>The term 401(k) gets thrown around so often but so many <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink0" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">employees</span></a>  have no idea what the plan is or how it benefits them. A 401(k) is <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink1" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">free </span><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">money</span></a>  that your employer is trying to give you. All you have to do is accept. If you’re not utilizing your company-sponsored 401(k), you are really missing the boat.</p><h3>Let me explain how this benefit works.</h3><p>In a very cursory view, a 401(k) allows you to set aside money from each paycheck for your <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink2" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">retirement</span></a> . The true benefit though is that your employer will match what you set aside up to a certain point! In most cases, a company will match dollar-for-dollar what the employee sets aside, up to 6%.</p><p>Let’s take a look at a very simple example. For the sake of easy math, let’s say that you make $52,000 per year. You receive $1,000 a week before <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink3" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">taxes</span></a>  or $2,000 every paycheck if you are paid twice a month. If you agree to set aside 6% for your 401(k), you will automatically have $120 taken from each of your paychecks. Your company will also add $120 to your account so you will end up with $240 per paycheck going toward your retirement! That is free money! Why would you not take it?</p><p>Common sense tells you that if your company is trying to give you a 6% raise, you should take it immediately but so many people do not. The reason most commonly cited is, “I just can’t afford to have 6% taken from my paycheck.”Â</p><p><strong>Please visit our site for more Retirement, <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink8" style="font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;color:blue;text-decoration:underline;cursor:pointer;"><span style="font-family:Arial;font-weight:bold;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">401k</span></a> , and Insurance information:</strong><br><a rel="nofollow" href="http://www.erollover.com/" style="color:blue;text-decoration:underline;cursor:pointer;">www.erollover.com</a></p><p>This is no excuse. If you are using every penny of your paycheck for expenses, some work needs to be done to lower your cost of living. Are you spending too much eating at restaurants or paying too much in rent? Scale back! You cannot afford to ignore the 401(k)! In this instance, if you are living at a bare-minimum and are coming up a little short, this is the time to use your <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink4" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">credit </span><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">cards</span></a> . Even if you are paying 21% in <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink5" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">credit </span><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">card </span><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">interest</span></a> , you’re earning an astonishing 100% return on <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink6" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">your </span><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">money</span></a>  through your 401(k)!</p><p>Another complaint I hear from people is, “My company is only matching up to 6%. What difference will that make?” It is absolutely huge! Let’s take a look at someone making $30,000 per year. A 6% contribute will be $1,800 per year. If you put in your part and the company adds another $1,800 to it, you’ll have a decent chunk of money when you are ready to retire! After 30 years in the 401(k), if your <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink7" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:normal;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">investment</span></a>  earns a modest 7%, you will have accumulated $340,058! If you earn only 1% more on your investments, you cross the $400,000 mark and end with $407,819! All of this for only giving up 6% of your check!</p><p>If you don’t think you can afford to give up the 6%, think again. Give it a shot and you will be surprised at how easy it is to contribute. You will surely get used to your checks being slightly lower than usual and your spending will adjust. Reverse your thinking, you cannot afford not to contribute!</p><p>Naturally, there is a lot more that goes into a 401(k) plan so do your research online or consult a financial adviser. Your company’s Human Resources department can also be a great resource for learning more about this benefit. The point is, when someone offers you free money, you take it.</p><p><strong>Please visit our site for more Retirement, <a rel="nofollow" href="http://www.erollover.com/blog/401k-planning/company-401k-planning#" id="KonaLink8" style="color:#009600;text-decoration:underline;cursor:pointer;font-family:verdana;border-top-width:0px !important;border-right-width:0px !important;border-bottom-width:0px !important;border-left-width:0px !important;border-top-style:none;border-right-style:none;border-bottom-style:none;border-left-style:none;border-top-color:transparent;border-right-color:transparent;border-bottom-color:transparent;border-left-color:transparent;background-image:none;background-color:transparent;text-transform:none;font-variant:normal;"><span style="font-family:Arial;font-weight:bold;font-size:12px;border-top-width:0px !important;border-top-style:none;border-top-color:initial;border-left-width:0px !important;border-left-style:none;border-left-color:initial;border-right-width:0px !important;border-right-style:none;border-right-color:initial;border-bottom-width:1px;border-bottom-style:solid;border-bottom-color:initial;color:#009600;background-image:none;background-color:transparent;width:auto !important;">401k</span></a> , and Insurance information:</strong><br><a rel="nofollow" href="http://www.erollover.com/" style="color:#cc0000;text-decoration:none;">www.erollover.com</a></p></span>