You know there aren’t many guaranteed investments out there today. But If you are a participant in a defined contribution plan, such as a 401(k), you may have access to one of my favorites. It’s called the company match. The company match is when your employer matches your contribution up to a certain percent. For example, if the company match is 5% and you contribute 5% of your salary, you have a total contribution or savings of 10%. If you save 2% the company matches 2% and your total contribution is only 4%. As you can see you want to meet that company match each and every year. It’s hard to do. But it’s one of the few guaranteed investments available to you today. Join those that are saving until it hurts (see chart) and imagine how far ahead of the pack you’ll be when you retire.
E.J. Smith works with new investors that have $2 million or more to invest. He can be reached at:firstname.lastname@example.org
Source: BlackRock Defined Contribution Survey