Posts Tagged ‘pension plan’

The Pension is Dead, Long Live the 401K!

Posted November 2, 2008 by Bernz

A Guide to Those Born Before 1980

As everyone knows, as more and more jobs get sent overseas fewer and fewer benefits are getting handed out to workers. What is even worse is that Social Security is in grave jeopardy. Neither of these two situations are going to resolve themselves any time soon. So the IRS in their has created tax-free vehicles for the purpose of long-term investment for retirement.

The 401K is the simple tax code for it. If your employer has a matching offer make you take advantage of it fully. The old theory of always saving money becomes most important in the case of a 401K. These vehicles only work and are effective when you put money in them religiously, so keep that in mind. that 401K’s don’t have strict limits like IRA’s and you can contribute a large amount of your paycheck to them. 10% of your yearly income is very wise and at those rates by the age of 65 you will have plenty of money to retire on.