Retire with Money Sept. 9

I only recently discovered that there’s a retirement savings day on the calendar, and it’s today: Happy National 401(k) Day! Unlike the subjects of many other industry-driven holidays, a 401(k) really is worth celebrating. If you have a 401(k), or a similar workplace savings account, you’ve got a huge advantage over those who don’t—and these programs continue to improve. But it’s up to you to make the most of your plan. If you were auto-enrolled at a 3% contribution level, which is the most common figure, keep increasing your savings rate till you hit 10% to 15% of pay. It won’t hurt as much as you may think, since you can get a tax break on the money you stash away. Plus, most plans provide an employer matching contribution, which can give you a big boost toward your goals. If you don’t have a 401(k), you can set up a DIY version by stashing money in an IRA or taxable account. In the end, the amount you save is what matters most to your retirement success, not the type of account you use. But with a 401(k), achieving a comfortable retirement is a lot easier.

Best wishes,

Penny

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