As if you couldn’t tell from the title, I’m a big fan of 401(k)s. Contributing to a 401(k) should come before all other investments for most. A 401(k) cuts the tax bill and allows for money to grow tax free. Many employers also match a percentage of your contributions.
Who doesn’t want free money???
Here are some fun facts about Mrs. 1500’s and my 401(k)s:
- We have about $600,000 in our 401(k) accounts, despite a short time period and making some setbacks and a big mistake:
- We both have been working for less than 20 years
- We haven’t always had 401(k)s at our jobs
- When we did have access to a 401(k), we didn’t always max it out (shame on us!!)
- I have “401(k)” tattooed on my body. I’d show you a picture, but it’s in an area that is inappropriate for younger readers. I also don’t want to distract the female readers.
- Last year, we socked away $53,750 into our Solo 401(k). You read that right! A Solo 401(k) is an incredible deal for the freelancer.
- I may use my 401(k) before I’m old and crusty. There are penalty free ways to access the money before the age of 59.5.
- I was drowning once and my 401(k) saved my life.
Sure, I made some of that up, but believe me, 401(k)s are completely awesome.
A 401(k) will:
- help you retire without having to depend on that rich uncle who may or may not blow it all on 27 year old girlfriends before he croaks
- stop that damn cat from peeing on the carpet
- increase your IQ
OK, I made most of that up too. I swear, I’m not on any drugs. Well, the 401(k) is a drug for me, but I’m not normal.
Never forget that 401(k)s are one of the greatest gifts that Uncle Sam gave to us savers.
Join the 10s who have signed up already!
Subscribing will improve your life in incredible ways*.
*Only if your life is pretty bad to begin with.