The Only 4 401(k) Rules You Need to Retire Rich
Everyone wants to have an enjoyable retirement, and having the financial resources to retire when and how you want is a dream that most people share. Employer-sponsored retirement accounts like a 401(k) plan can be a crucial tool in helping you retire rich, and using your 401(k) can be a lot simpler than many think. Just by following four simple rules, you can make the most of your 401(k) and get on the path toward a richer retirement.
You can't benefit from your 401(k) if you don't sign up. The paperwork you'll need to participate in your employer's retirement plan is generally part of a big packet of materials you get when you first start a new job, and so it's easy to overlook it in the rush of things to get done during your first few days. The sooner you sign up, the sooner you'll be able to start getting the tax benefits of retirement contributions as you build up your future nest egg.
Recently, many employers have started to make participating in their 401(k) plan the default option for new employees, requiring you to opt out if for some reason you don't want to be part of your employer's plan. This can simplify the sign-up process, but the downside is that the default contribution under such plans is sometimes smaller than is ideal. Even if your employer does make participating in a 401(k) automatic, it still makes sense to look at your options and make whatever changes are needed to take maximum advantage of the plan's benefits.
Source: Fool.com
