Chapter 4
Checking the Benefits of a 401(k)
IN THIS CHAPTER
Understanding how a 401(k) plan helps you
Getting to keep your employer’s contribution
Benefiting from investment pros
Keeping your money safe
Avoiding potential problems
In the 40-plus years 401(k) plans have been available, millions of Americans have used them to save for retirement. Because Social Security alone won’t provide adequate retirement income and fewer companies offer a traditional pension plan, 401(k)s have become an essential part of the average worker’s retirement plans.
Even young people, for whom retirement is normally low on the priority list, have jumped on the retirement savings bandwagon. They’re the smart ones, because in some respects, how long you save is more important than how much you save.
The 2008 market crash caused 401(k) plans to come under fire because owners saw large drops in their accounts. Some blamed the 401(k) itself, but that’s like blaming the messenger who brings you bad news. Those ...
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