8 out of 10 millionaires reached millionaire status by age 49 inside their 401(k)! This investment tool is too powerful to overlook, but how exactly does it work? How can you be sure your 401(k) plan is a good one? And are you sure you’re maximizing its full potential? In this episode, we break it all down, equipping you with everything you need to know to become one of those 8 out of 10 millionaires.
In this episode we explain:
- Where the 401(k) came from and how it works
- 401(k) basics that everyone should know
- Common pitfalls to watch out for and what NOT to do with your 401(k)
- The smartest ways to invest inside of your 401(k)
- Advanced strategies to maximize your money as your wealth grows
Research and resources from this episode:
- ICI Resources on 401(k) Plans
- Private Pension Plan Bulletin Historical Tables and Graphs 1975-2017 (Department of Labor)
- The National Study of Millionaires (Ramsey Solutions)
- 401(k) Basics: When It Was Invented and How It Works (Northwestern Mutual)
- A brief history of the 401(k), which changed how Americans retire (CNBC)
- Roth vs. Traditional 401(k) Contributions – How to Choose (Employee Fiduciary)
- What to do with after-tax 401(k) contributions (Fidelity)
- Small Businesses Favor Safe Harbor 401(k) Plans (SHRM)
- Increased Penalties for Failure to File Retirement Plan Returns (IRS)
- How America Saves 2019 (Vanguard)
- Multiple 401(k) Rules (White Coat Investor)
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