Save for Retirement. Right the Heck Now.

401(k) plans were created as an alternative to private pension plans which, at the time, were failing in stupendous numbers and being discontinued left and right by employers. So the 401(k) is kind of a “do it yourself” replacement. The sales pitch was compelling enough: Instead of your employer funding your retirement plan (possibly in part by using funds deducted from your paycheck, possibly not), you’d actively kick in some money and your employer could “match” you. In 2023, a 401(k) can receive up to $66,000 in contributions, all tax-free. Do that for a 40-year career and you’d end with almost $125MM, assuming a fairly conservative 6% annual return, and ignoring the fact that the contribution limit goes up every year to help cover inflation. <a href="https://medium.com/adultingforadults/save-for-retirement-right-the-heck-now-5b44bba04868">Visit Now</a>