How Can I Build A Nest Egg?
other than Social Security
Also 401 K plan
The 401 K plan
Is the favorite for many Americans as it allows you to save tax free until you are 59 1/2 where you can leave it there or take some or all of it out tax free! Marvellous idea!
A lot of people in America should have thought about it back in the day and are reaching retirement age and don't have much to show for the years of work.
In 2015 it is said that about 89% of American households nearing retirement age have 401(k)-type accounts. I am not sure about the truth in that percentage. However...
Gallup has said that 21% of people with them have taken out early withdrawals or loans from them.
Taking a loan on a 401K is still usually the cheapest way to get money when you need it as it comes out to be about 5% interest as compared to 13% on a credit card for the same money.
That figure sounds wonderful, but you can have a 401K with as little as $100.00 in it.
There are people who put money in stocks and had their friends like Bernie Madoff here (who made off with their money) take them for a ride.
Others put money in government bonds etc., there are IRA's and Roth IRA's.
We don't look to advise people where to invest their money because it isn't our field, but we do advise them to think carefully about starting something secure as young as possible.
Talk about investments...
This author bought a used 1960 Fender Stratocaster guitar in 1976 for $106.00.
It was sold in 1993 for $2,800.00 as it was a collectible.
In November of 2011, the same instrument was going for $28,000.00. Damn!
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