I know this has probably been asked before, but I am curious. My head hurts just considering making calls and filling out paperwork to do something I may regret or wish I had done differently.

6 comments

  1. It can depend on a lot, but if there’s a match it’s basically free money. Now usually it only vests after a certain amount of time with that employer, but either way saving tax free money is usually good.

  3. Why wouldn’t it be? It’s basically a raise. Is it that you want to spend the money right now? Or that you’re unhappy about the performance of the market for the last couple of years?

  5. Is money good or bad?

    The question is literally this black and white. Yes, you should contribute to your 401K for pretax savings.

    How much you should contribute is a discussion that differs for everyone. But at the absolute minimum, you should put in whatever it takes to hit your company’s maximum match.

  6. Short answer: yes.

    Longer answer: if your employer matches 6% of your salary, you should put in 6%, possibly more. If you make $100,000 you’ll be putting in $6,000 a year and your employer will be putting in $6,000 a year. You could select a target date 2050 fund if you plan on retiring around that year.

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