2. Contribute to Your Employer’s Retirement Plan
Second things second – Contribute to your Employer’s Retirement Plan
If your employer’s retirement plan allows you to contribute a certain percentage of your salary, and they match your contribution by contributing a percentage, then that is free money and you need to sign up.
For example, your company allows you to contribute 5% to a 401(k) and if you do they will match that with 5% as well. Even if they only match 3% or maybe even a whopping 8%, then do it. It’s free money!!
However, if they say you can contribute more than 5% but they won’t match anymore than the 5%, then don’t contribute any more. The reason is, if you have extra money to invest, then you can invest in mutual funds that are most likely better than what your company offers. I’ll explain in the third action.
If your company does not have an investment plan then do the third action. If you can contribute to your company’s investment plan then still try and do the third action. Ultimately, we want to do all three actions.
Here’s a link for today you can use to compare what funds your company offers: http://www.fundalarm.com
Here’s another link that is excellent to use to help select funds inside your company’s investment plan: http://www.smart401k.com