If you’ve been reading or hearing about the stock market lately, you may be wondering why you’re contributing a percentage of your monthly income to your company’s 401k plan instead of just putting that money directly into the stock market.
Indeed, stories of people who bought stock in Google or Apple early abound on the internet, as do articles stocks about people who followed a gut feeling and struck it rich.
The advantages of a 401k
While a 401k isn’t as liquid as a normal investment account, that isn’t to say that there aren’t any benefits to 401ks. One of the biggest benefits of investing in your company-sponsored 401k plan is the fact that you will likely get some form of an employer match in addition to the percentage of your income you elect to invest.…Continue reading