Free Money!

Have you ever seen one of those funny videos where someone stands on a street corner and tries to hand out $10 bills? Many people refuse the money and keep walking. But what if there was a way to get far more than $10 in free money, and it is perfectly legal.

A recent Employee Benefit Research Institute study reported:

• One of the primary vehicles for retirement savings is an employer-sponsored retirement savings plan, like a 401(k). Eighty-two percent of eligible workers say they participate in such a plan, and another 8% of eligible workers report they have money in such a plan, although they are not currently contributing.
• Cost of living and day-to-day expenses are the leading reasons why workers don’t contribute (or contribute more) to their employer's plan, with 41% of eligible workers citing these factors.
• The report also said that only 10% of those working are contributing the legal maximum to their plan. The maximum annual contribution for a 401(k) is $17,500 ($23,000 if you are over 50). For a SIMPLE 401(k), the limit is $12,000 ($14,500 over 50). Also, many employers will match all or part of an employee's contribution.  That match is free money for your retirement savings.

Source:  Dennis Miller, Investopedia

D2 Capital Management offers fee-only consultations for persons enrolled in 401(k) plans.

The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 

 The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville.  The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.