Here's part 2 of a Money magazine series on 10 rules for building wealth that I'll be covering over the next few days. Today their suggestion is to use your 401k. The details:
If you're not already enrolled in your company's plan, stop reading now and sign up. Since you're putting in pretax dollars, a 401(k) is an unrivaled savings vehicle, and passing up an employer match is - literally - giving up free money.
I love, love, love 401ks. I have fully maxed mine out for the past several years and it's done a great job at helping me grow my net worth.
For some tips on making the most of 401ks, see these posts:
What if your employer will match a percentage of whatever you put in?
I currently contribute 14% of my paycheck, will bump up to 15% for 2007.
Should I contribute to a Roth now or be putting more in to get the employer match?
(It takes 6 years to be fully vested at the company, I'm heading into my 2nd year)
Posted by: Vicky | January 09, 2007 at 01:57 PM
Vicky -- Check out this post (at the bottom) where I addressed the 401k versus Roth issue:
http://www.freemoneyfinance.com/2006/11/the_best_allaro.html
Posted by: FMF | January 09, 2007 at 04:25 PM