401(k): Your Secret Weapon for Retirement Savings

As open enrollment approaches, we’re spending October talking about benefits. First up, we’re highlighting a powerful retirement savings tool: the 401(k). If your employer offers this benefit, here’s why you should take advantage:

1. Tax Efficiency: Contributions are tax deductible and grow tax-deferred, meaning a dollar invested in a 401(k) grows more than a dollar invested in a standard brokerage account.

2. Employer Matching: Many companies offer matching contributions – don’t miss out on this free money!

3. Portability: Your 401(k) stays with you, even when changing jobs.

4. Emergency Access: While not ideal, you may be able to borrow from your 401(k) in financial emergencies.

Not every company offers a 401(k), so if yours does, it’s a valuable opportunity. Whether you’re just starting or optimizing your strategy, understanding your 401(k) can significantly impact your financial future.