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This is Jeff Rose from Good Financial Cents with another good financial tip for you. Just
the other day I had a client ask me, the client is currently involved in the 401K with their
employer, and the employer has been slowly and steadily reducing their employer match.
Finally, just recently they took away the match all together. No more free money, no
more match. The only thing that goes in the 401K is what my client is putting into it.
My client was a little bit ticked off, which I guess we all would be in that same situation.
They asked me, "Jeff, my employer took away my match. Should I stop contributing to my
401K?" The easy and simple easy to that question is absolutely not. Just because your employer
has taken away your match doesn't mean that you need to stop saving for your retirement.
Now you could make the argument that instead of the 401K you could divert that towards
a traditional or Roth IRA. But here's the thing; you're only going to be able to save
$5,000 on a Roth or traditional if you're under the age of 50, a $1,000 catch up for
$6,000 if you're over the age of 50. So that only allows you up to a certain limit to save
to have some type of tax deferral protection.
As an employee, the only option that you have is a 401K. Just because your employer has
taken away the match doesn't mean you need to take away what you're saving for retirement.
It doesn't give you an excuse or a reason to stop saving. That was a very simple answer
and a very good tip. If your employer takes away your free money in the 401K, it does
not give you the reason to stop saving. Save for retirement and make sure you've got a
handsome and healthy nest egg waiting for you in your retirement years. This is another
good financial tip for you. I'm Jeff Rose from goodfinancialcents.com.
The opinions voiced in this material are for general information only and are not intended
to provide specific advice or recommendations for any individual. To determine which investment(s)
may be appropriate for you, consult your financial advisor prior to investing.