by Dhara Singh
If you don’t use your employer’s 401(k), you’re committing one of the worst retirement mistakes possible, according to Cameron McCarty, president of Vivid Tax Advisory Services.
“What I want viewers and our clients to do is to contribute as much as they can,” McCarty told Yahoo Finance recently.
The days of pension plans are fizzling out. Instead, workers are offered 401(k)s — employer-sponsored retirement plans that allow employees to contribute a portion of their paycheck before taxes to retirement savings. These contributions are invested and, over time, grow into a nest egg you can tap when you retire.
To nudge workers, a third of employers auto-enroll their employees into a 401(k) plan, a two-fold increase from a decade ago, according to a recent analysis from Fidelity Investments.
This is provided for informational purposes only and should not be construed as investment advice. References to specific portfolios should not be considered a recommendation.
Data and analysis do not represent the expected future performance of any investment product or strategy.