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 The money you are able to save in taxes gets to grow tax deferred until withdrawn.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 |