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Take advantage of employersponsored retirement accounts from "summary" of The Smartest Investment Book You'll Ever Read by Daniel R. Solin
Employersponsored retirement accounts are a valuable benefit offered by many companies. These accounts provide employees with an opportunity to save for retirement in a tax-advantaged manner. By contributing to these accounts, employees can take advantage of the employer match, which is essentially free money. It's like getting a raise without having to do any extra work. One of the most common types of employersponsored retirement accounts is a 401(k) plan. With a 401(k) plan, employees can contribute a portion of their salary on a pre-tax basis, meaning that the money is taken out before taxes are deducted. This can help reduce the amount of taxes owed each year. In addition, many employers offer a matching contribution up to a certain percentage of the employee's salary. This matching contribution can significantly boost the employee's retirement savings over time. Another type of employersponsored retirement account is a 403(b) plan, which is typically offered by non-profit organizations, such as schools and hospitals. Like a 401(k) plan, a 403(b) plan allows employees to contribute a portion of their salary on a pre-tax basis. Employers may also offer a matching contribution, although the rules for matching contributions may differ from those of a 401(k) plan. In addition to 401(k) and 403(b) plans, some employers offer other types of retirement accounts, such as a SIMPLE IRA or a SEP-IRA. These accounts have different rules and contribution limits, so employees should familiarize themselves with the specifics of their employer's plan.- Taking advantage of employersponsored retirement accounts is a smart financial move. By contributing to these accounts, employees can save for retirement in a tax-efficient manner and benefit from any employer matching contributions. It's a simple way to build wealth over time and secure a comfortable retirement.
