2006-12-27 11:04:57 · 8 answers · asked by Eduardo C 1 in Business & Finance ➔ Personal Finance
It most certainly is especially if your company matches a portion of your contribution. The compounding effect of the tax deferral is another reason to contribute. Suppose 2 people are 20 years old and 1 contributes to a 401k and the other 1 doesn't. When they become 30 years old the 1 that didn't contribute starts to contribute, but will never catch up to 1 that contributed for the 1st 10 years even if the one that contributed previously doesn't invest another cent. That's the effect of compounding.
If you have the opportunity, do it. You won't regret it.
2006-12-27 11:21:29 · answer #1 · answered by reddy2hunt 4 · 0⤊ 0⤋
The 401k is great as far as it goes. Absolutely put in enough to get the full match amount (free money). After that look at your options. You can open an IRA or a Roth (better) and usually have better investment options that what your 401k offers. You must save for retirement. A matching 401k is the best option to start with.
2006-12-27 13:23:41 · answer #2 · answered by Sun and Sand 3 · 0⤊ 0⤋
Absolutely. My husband and I have put in money in our 401k plan from the start of our employment and 20 years later, we are doing very well with our savings. Hope this helps.
2006-12-27 11:13:08 · answer #3 · answered by cc_rider41 1 · 0⤊ 0⤋
Its one of the most worthy investment options available. All the money put in it is tax deferred as are the earnings on the contributions. Most companies match your contributions. Most plans allow you to borrow the money without penalty if you need it. Put in as much as you could posssibly do.
2006-12-27 11:49:52 · answer #4 · answered by nickfromct 3 · 0⤊ 0⤋
Yes. Giving up free money via the company match is always a bad idea.
2006-12-28 03:45:20 · answer #5 · answered by Blicka 4 · 0⤊ 0⤋
Do you think social sercurity is going to be around for you? It is a good thing to do, and do it when you are young. You may also want to try a roth IRA also. Try to say 10% of your income and if your company matches go atleast to the highest match.
2006-12-27 11:16:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
yes, but it is a retirement plan - so dont put the money if want to get it out soon
2006-12-27 11:41:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
it better be or a lot of people will be pissed off.
the only cause for it to be worthless is a depression like in the '20s
2006-12-27 11:17:28 · answer #8 · answered by professorminh 4 · 0⤊ 0⤋