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How To Reap Free Retirement Cash

How To Reap Free Retirement Cash

There’s nothing better than a getting a little bonus when you save money. It’s been a staple in retail for years.

But retirement savings is hard. You have to make a lot of decisions: How often? How much? Which funds are best? Most employers — if they offer retirement plans at all — don’t make it easy for you.

An employer match is the one exception to the complexity of retirement savings. You make a basic contribution at a certain level and your employer will match a set percentage.

This “free money” is just that. It’s not your cash, but you have to save a certain amount to qualify. The advice on a match is incredibly simple: Do whatever you can to earn the match. You’re doubling your investment with almost no effort on your part.

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According to the FINRA investor newsletter, the math on a match is pretty compelling:

“Let’s assume you are 30 years old, make $40,000 and contribute 3% of your salary ($1,200) to your 401(k). And, only for the sake of this example, let’s also assume you continue to make the same salary and same contribution each year until you are 65. After 35 years, you will have contributed $42,000 to your 401(k).

Now let’s assume you get a match from your employer. One of the most common matches is a dollar-for-dollar match up to 3% of the…

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