These 401(k) Strategies Could Help You Retire a Millionaire
Who wants to retire a millionaire? Many of us do, and a 401(k) could be your ticket to achieving that goal -- that is, if you manage yours the right way. While setting money aside in any retirement plan is a good way to grow wealth, a 401(k) in particular could lead you to millionaire status by the time your senior years roll around. This especially holds true if you adopt the following strategies.
Most employers that sponsor 401(k) plans also match employee contributions to varying degrees, and if yours does the same, capitalizing on that match could be your ticket to becoming a retirement millionaire. Remember, not only does your employer match constitute free money for your savings, but as is the case for your out-of-pocket contributions, you also get the opportunity to invest your matching dollars for added growth.
Let's say your employer puts $1,800 a year into your 401(k) over 30 years, and that your investments in that plan also generate an average annual 7% return, which is a bit below the stock market's average. All told, you'll end up with $170,000 from your employer alone over the course of three decades. Talk about impressive.
Source Fool.com
