Invest in yourself

Learn how to protect your future and manage your money with expert advice.

Four Basic Ways 401(k) Plans Work
There are four ways money can go into a plan, and only one of them comes out of your pocket! It's free money, in that sense. Take maximum advantage of it.

1.	The employee makes pre-tax contributions.
2.	The employer makes basic contributions.
3.	The employer matches your contributions.
4.	The employer makes a profit-sharing contribution.

Three Great Things About 401(k) Plans

	You pay no taxes on contributions.
	You pay no taxes on profits.
	Employers essentially give you "free money."

Drawbacks of 401(k) Plans
Once you make a contribution, Ric says to kiss that money goodbye until you reach retirement.

	Once you put money into the plan, it must stay there. You cannot make withdrawals.
	Borrowing is bad. If you take any money out prior to retirement, you will be charged taxes as well as a ten percent penalty.
	401(k) plans can be confusing, and employees often don't know what to do with their invested money when they leave a company.