Are you ready for retirement?
by Dennis E. Chilcote, Senior Account Executive, Smith Barney, Seattle
Although Americans work over 90,000 hours in their lifetime, they virtually spend one day preparing for it.
One way you can plan now is to utilize your company's 401 (k) Plan. This plan is a pension account designated for employees of businesses.
What benefits does the 401 (k) Plan offer you? Here are five benefits:
Are all companies' 401 (k) Plans the same? No. Please review the article in the May 1995 issue of Worth Magazine, "How the Biggest 100 Stack Up." You will be surprised on how your company compares.
- Allows monthly payroll deductions that have not been taxed.
- Reduces your taxable income.
- Funds grown on a tax-deferred basis.
- Allows up to $10,000 in contributions for 1996.
- Certain companies match a percentage of the employees contribution increasing your wealth building.
Each January and February review your investments. What was your prior year's return? Do I need to make changes? Do I need to increase my contributions?
Spend more time planning your future investments. You spend a lot of time on a purchase of a new home, car, or stereo. Why not your future? Remember, investment planning is not a one-time event!