Recs

1

Free Money for Retirement: A Shocking Number of Workers Turn It Down

One of the best things about investing in a 401(k) is getting an employer match. But a recent survey found that a shockingly large number of employees don't contribute enough to their retirement accounts to take full advantage of matching contributions.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks more closely at the Fidelity survey, which found that 21% of workers miss out on the free money available from matching. Dan notes that in some cases, all it takes is a 3% contribution in order to get full matching, making it seem inconceivable that workers wouldn't take advantage. But Dan suggests that high investing costs and long vesting requirements can dissuade people from saving in their 401(k), even though those arguments have flaws of their own. Dan concludes that it's important to use your 401(k) as effectively as possible.

How to get even more income during retirement
Taking advantage of employer matching contributions can help boost your retirement income, but it's not the only way. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Have general questions about Social Security? Email them to SocialSecurity@fool.com, and they might be the subject of a future video!


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 31, 2014, at 8:08 PM, Disgustedman wrote:

    The last time I had a match, was in 2006...The company laid off 90% of the permanent workers and then brought in temps. Since then, I have had one perm job and the company shut down after 9 months.

    Now? Good luck finding a company to match funds...My last one that did it was up to 6%....Man, I had a few grand, but had to cash out due to the economy (No I won't blame any politician, they're all at fault anyway)

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2978119, ~/Articles/ArticleHandler.aspx, 11/27/2014 10:33:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 1 day ago Sponsored by:
DOW 17,827.75 12.81 0.07%
S&P 500 2,072.83 5.80 0.28%
NASD 4,787.32 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement