As you’re working to build your Freedom Generator, are you overlooking a secret source of money? A way that you can possibly double the amount of money you’re able to invest in your future… all without breaking a sweat?
Not only is this possible, but your employer, of all people, wants to make it happen. In fact, your job’s employer-sponsored retirement plan is an incredible way to beef up your Growth Engine and accelerate your Freedom… if you do it right. Here’s how:
Alert: Free Money
Got a 401(k), a 403(b), a Roth 401(k) or some other similar retirement account that’s offered by your employer? There are any number of names for all the employer-sponsored retirement plans out there. For the sake of simplicity though, though we’ll refer to your plan here simply as a 401(k). But, keep in mind that the concepts we’ll discuss generally apply to most company plans that you may be offered.
These days, if you put your money in a savings account, you’re probably seeing an APR of about 1%. If you invest your money into income-generating stocks, you’re doing well if your annual return is around 5%.
And, if you put your money into one of the accounts in your Growth Engine bucket, getting a return of 8% or more is pretty sweet.
But what if I told you that there’s somewhere you could get a guaranteed, 50% or 100% return on your money? There is! If your employer offers a matching contribution when you contribute to your 401(k), that’s exactly what you receive. A 401(k) matching program is specific to each employer but typically has one of these two formats:
Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.
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How it going Doc? Good article, simple and to the point. Have you done similar research for these type of savings on the Australian Superannuation market.