Why is the 401k Plan Right for You?

You know you need to save for the future, but where do you start? You might think you’ll be making more later in life and you can start saving then, or that you’ll hit the lottery and retire easily. Sure, maybe those things will happen, but what if they don’t? Your choice to begin a 401k plan means you’ve made the decision to look towards your future, to think realistically about your goals.. By opening at least one retirement account now, your money can be compounding for decades and when it’s time to retire, you’ll be happy you planned ahead. At Lighthouse Services, we know saving money can be hard but the reward is worth it.

Future Savings with the 401K Plan

As with any savings plan, the sooner you start the more you’ll have in the end. A 401k plan is an employer-sponsored program that allows you to take a percentage of your pre-tax income and put it in a savings account. Basically, the 401k reduces your tax rate so you won’t pay taxes on that money until you withdraw it. Because many people tend to be in a lower tax bracket when they retire, the 401k allows you to pay a smaller tax rate on your savings when you actually take it out of your account.

Once you’ve enrolled in a 401k program, the next step is choosing your investments. In most cases an employer will provide you a list of possible investment choices that they have worked with an investment broker to determine. Whether you choose a stock fund, money market fund or even bonds, the team at Lighthouse Services knows that most important choice has been made… the decision to sign up in the first place.

Get Ready for Your Retirement

When it comes to a 401k plan, the biggest mistake you can make is not signing up at all. Once you choose to start down the road to retirement, the other choices become much easier. Let the professional and experienced staff at Lighthouse Services assist you in making the right choices. Contact us today and your future self will thank you!