Your 401k & You

No investment tips or trick will be found here.

Mostly I would just like to implore how important it is to start your 401k as soon as possible. Especially if your employer matches any percent of what you put in. Any percent that you get from your employer is like free money.

Yes, when you start out it will hurt a little. Chances are it will hurt a lot less in the long run when you get to cash that 401k in to get the money. Most people believe that your next raise will make up for what you put into the 401k or something to that effect. A raise while adding to your 401k will not effect you in a bad way. All raises are a good thing.

I once had the opportunity to start a 401k with a company that would match up to 6%. So if I put in 6% they would match it. If I put in 1% they would match 1%. If i put 7% they would only match 6%.

I blame my youth and in-experience in the work force for not joining up right then and there. I missed out on several hundred dollars towards my 401k. Thinking back on it always gives me a twinge or regret because i could have taken that 401k to my cureent job.

Your 401k will follow you from job to job. From what I have heard it only takes a little paperwork.

The 401k company that you go with will tell you that you can take a loan from your 401k account. Don't take a loan from it or you might be crying your self to sleep with the interest they will charge you. I understand that it will be added to the percent that you are already taking out and that it can be rather painful. As can the fees that you will have to pay to take a loan out of your money. I have heard that loans is how the 401k companies make their money.

So, in short, please do your self a favor and start your 401k as soon as possible. You will be happy for it in the long run. Just don't take a loan from it.