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A 401(k) primer - Investopedia

The 401(k) has become one of the most important vehicles for amassing retirement income, but far too many younger workers do not understand how important these plans are. Basically, a 401(k) is an employer-sponsored tax advantaged savings plan which enables the employee to invest for their future retirement. Employers typically make matching contributions to the employee’s 401(k), such employer contributions made at different levels depending on the employer. But in any case, starting a 401(k) earlier in your working career is the best way to achieve the benefits of compounding, which can result in a very substantial nest egg when your golden years are suddenly upon you (as they inevitably will be). This informative Investopedia article by Adam Palasciano reveals everything you need to know about 401(k) plans, including how to get started and the advantage of starting early. Click here to read the article.

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