3 Reasons Your 401(k) Has Been Slow to Grow
There's one aspect of 401(k) plans that makes them really effective -- the automation aspect. Employer-sponsored 401(k)s are funded through payroll deductions. That takes human behavior out of the equation and helps savers stay on track.
When you have a long-term savings plan that you're actively funding, such as an IRA you must transfer money to month after month, you might fail to meet your savings goals when unexpected events or impulse purchases get in your way. With a 401(k) plan, you're committed to those contributions, and they're taken out of your paycheck before you even get a chance to spend that money elsewhere.
Image source: Getty Images.
Source Fool.com
