If someone offered you free money, would you refuse it?  You are refusing free money if your employer offers a 401(K) retirement plan with a company match and you aren’t participating.  Even if your employer doesn’t offer a match, you’re missing out on tax savings.  Contributions to traditional 401(K)’s reduce your Adjusted Gross Income, which is used to determine your tax bracket.  The money you are able to save in taxes gets to grow tax deferred until withdrawn.  This means you are able to earn a return on money that would have been paid in taxes. Haven Wealth Group advisors are available to help to help understand your current 401(K) or help make the decision to participate in your employer 401(K).

Estimated Investment Earnings Without 4% Employer Match With 4% Employer Match
Age Today 35 35
Target Retirement Age 65 65
Current Salary 75,000 75,000
% of Income To Save 5% 5%
Employer Match 0% 4%
Years to Retirement 30 30
Average Annual Rate of Return 7% 7%
Present Value of 401(K) 0 0
Annual Savings Contribution 3,750 6,750
Future Value of 401(K) 354,228 637,610
$?s You Contributed Over Time 112,500 202,500
Investment Earnings 241,728 435,110