Improve Your Future in 5 Minutes
There are all kinds of things you can do to improve your future money-wise, but a few are super easy to do. In fact, you can improve your future in about 5 minutes, just by doing one little thing: increasing your 401k contribution.
Were you expecting some razzle-dazzle secret? Sorry.
Taking a few minutes to increase your 401k contribution (or other retirement/investing account contribution, if you don’t have a 401k) may not be exciting, but what it can do for you long-term is.
So seriously, take just a few minutes right now and increase it by at least 1%. More if you feel like it, of course, but you won’t miss 1% percent. (And it’ll end up being even less than that that actually gets taken out of your check, since 401k contributions are pre-tax.)
Which of course is another benefit — reducing your tax liability.
Don’t think you have time right this second to improve your prospects in retirement? It really does not take that long to fill out a little form. Contact your HR or login to your IRA account and do it.
After all, you have time to read about personal finance, which means you have time to act too. Make like Nike and just do it.
Reviewing your retirement goals at least once a year is very important. In these uncertain economic times, revisiting your 401K to make sure your allocations and contributions are in line with your goals is crucial.
As you might expect, I totally agree. Coincidentally I found out today that there was a mistake in my 401k — luckily it was in my favor :)
Any time you get a raise, the first thing you should do is increase your 401(k) percentage by 1% (or more). I know raises haven’t been exactly common lately, but strive to do it regardless. You’ll not only get the extra 1% but you’ll so be basing it on a bigger number due to having gotten the raise. It adds up over time!
Yes that’s a great time to do that! Btw I like the name of your new site :)
Some companies have an ‘automatic increase program’ (I know mine does) where you can have it automatically increase your 401(k) contributions up until some predefined amount. Could be just the nudge some people need!
That sounds like a great program. The less people have to think about stuff like that, the better.
Hey! I was expecting a razzle dazzle secret. What gives?
:)
Hehe, you’ll have to suffer with my non-sparkly secret.
I’ll continue to max out this year.
You should submit this post to carnivalofretirement.com. ;)
Ooo, first edition too. I will do that :)
I’d like to max out my IRA but I have to see what my tax liability for 2011 will be first.
Hopefully you’re able to do that :)
I totally agree! Savings is a priority for me so I set up a payroll deduction and now it is automatic.
Making the things it takes to turn priorities into reality automatic is the way to go :)
My retirement savings is set to go up by 1% every April. That’s the month my company gives raises, so the extra money starts coming out of the check at the same time extra pay hits. That way, I never know what I “could” be bringing home. Instead, my retirement savings goes up and I still get a raise on my paycheck.
That’s a great way to do it — no pain and a gain :)
Good idea, especially if you have a company match! That is free money that is just too good to pass up.
Oh yeah, free money is the way to go!
It took me a while to believe this but it’s really true. Once I started increasing my percentage I was so shocked at how quickly the money adds up, especially with an employer match. -Sydney
It’s amazing how quickly those little increases add up!
Good idea. It would change a lot especially the long term.
That’s for sure :)
I am maxing out my 401k already, taking advantage of my companies maximum match numbers. What should I do next? Are there any other tax deferred options?
Well, it’s not tax deferred, but if you qualify for a Roth you could consider that.
I’m 52, so I am ‘of age’… I was hoping there was something else I was missing! thank you.
I don’t actually know of a lot of tax deferred options, because I haven’t fully investigated them. If I have a chance to do some research I’ll write a post on what I find out though.
I appreciate it! If there is more I can be doing I want to take advantage of it.