The heart of the wise inclines to the right, but the heart of the fool to the left. Ecclesiastes 10:2
It is advantageous to invest in a company retirement plan even before paying off a home mortgage if the company matches the fund at a rate of 25 percent or more. It's hard to beat an investment where someone guarantees you a 25-percent return the first year.
Taken from the Investing for the Future calendar by Larry Burkett.
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Comments: 30
Helping you with your Gather Goals
1. Most companies match with free money and no taxes - this reason alone is great
2. You can save the fedeal income tax on the contribution, off the top.
If you contribute $5,000 in 401(k) or traditional IRA (for most people in low to mid salary range), you can save $1,250 if your tax bracket is 25%, or $750 if in 15% bracket. So contribute more, and lower your tax withholding - double win.
3. All future interest is tax deferred. This is a huge tax savings
4. The money goes directly to the beneficiary if you die (there may be tax consequence)
Our retirement investment increased by $120K in the last 30 days! I may jump out soon.
This is so true
Thanks for sharing on Getting to 3000 Together
My father worked for Sears who always matched his retirement. I wish I'd found a company that would do that.
thanks for sharing
Coming back to help some more