3 Smart 401(k) Moves to Make in 2020
Not everyone has access to a 401(k) plan through work, but if you're among the fortunate ones, you should know that you have a real opportunity to amass some serious retirement savings. And if you make these moves in the year new, you'll be doing your future self a major favor.
A large number of employers that sponsor 401(k) plans also match employee contributions to varying degrees. The specifics of your match will depend on your company's policy, but it pays to put in enough of your own money to snag that match in full. If you don't, you're really just giving up free cash.
Imagine your employer is willing to match contributions totaling up to 5% of your salary. If you earn $50,000, that's a free $2,500 coming your way, assuming you contribute $2,500 yourself. And remember, when you get your employer match, you don't just get a lump sum of money that sits in your account and does nothing; you get a chunk of money you can invest for added growth. In fact, if you were to invest $2,500 for 30 years at a 7% average annual return, you'd grow it to $19,000. And that's a nice little boost for your nest egg.
Source Fool.com
