What even is a 401k match?
A 3% match is a dollar for dollar match up to 3% of your gross income. You make $100,000 and put $3,000 into your 401k. Your employer will match it and put $3,000 on top, in your account. Put $10,000 away and the employer still puts $3,000. Now you know
Don’t be Surprised When Your Child’s College Tuition Bill Hits, be Prepared
Starting at birth investing $100 a month into a college savings account till 18yrs old, assuming a 8% rate you would have $44,940 of tax free money on qualified educational expenses. Make money simple
You saved $2,000,000 in a Pretax 401k.
Taking your $100,000 out annually. With current tax rates it would be about 15% federal and 6% state if in California. Your income is cut to $79,000 after saving $2,000,000!
But if you used the Roth option you would keep all $100,000
Millionaire Math
Here's the monthly invested contributions needed, at each age starting at $0, to have $1,000,000 at age 65 with a 8% average return (The S&P 500 average 30-year return is 10.4%)
20: $220
30: $490
40: $1150
50: $3075
Your most powerful dollars are today