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“Take advantage of 401(k) plans offered by employers. Most offer a ‘match’ — which is basically free money added to the account by the employer. Always put in at least how much the company will match. if they match the first 5% you put in, then put in at least 5%. You don’t get taxed on the money you put in until you withdraw in retirement, so your taxes are lower on your check, too. There are usually rules about when the match money becomes yours (vesting schedule), but keep an eye on that date if you are considering switching jobs; I’ve seen people lose thousands of dollars because they left a job three or six months before they were either fully vested or at least a milestone.”
“If/when you switch jobs, do NOT get tempted to just take the money out and blow it. Besides the taxes and penalties for using it, that couple thousand dollars (that was already not really in your pocket all along) will be a nice chunk of money down the line. And time does move faster the older you get…”
—Anonymous, 49, Missouri
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