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Article Title:
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Saving for Retirement: Compound and Grow Your Employer Matching Retirement Plan

Article Description:
====================

If your employer offers a matching contribution to your
retirement plan, the cardinal rule is: contribute whatever the
employer is willing to match-even if it is only a percentage of
your contribution and not a dollar for dollar match.


Additional Article Information:
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354 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-08-24 12:48:00

Written By:     James Lange
Copyright:      2006
Contact Email:  mailto:[EMAIL PROTECTED]



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Saving for Retirement: Compound and Grow Your Employer Matching Retirement Plan
Copyright © 2006 James Lange
Retire Secure!
http://www.retiresecure.com



If your employer offers a matching contribution to your
retirement plan, the cardinal rule is: contribute whatever the
employer is willing to match-even if it is only a percentage of
your contribution and not a dollar for dollar match.

Imagine depositing $1,000 of your money into the bank, but
instead of getting a crummy toaster, you receive an extra $1,000
to go along with your deposit. To add to the fun, imagine getting
a tax deduction for your deposit and not having to pay tax on
your "gift." Furthermore, both your $1,000 and the gift $1,000
grow (it is to be hoped), and you don't have to pay income tax
on the interest, dividends, capital gains, or the appreciation
until you withdraw the money. When you withdraw the money, you
will have to pay taxes, but you will have gained interest,
dividends, and appreciation in the meantime. That is what
employer matching contributions to retirement plans are all
about. If the employer matches the employee contribution, it
offers a 100% return on the investment in one day (assuming no
early withdrawal penalties apply and the matched funds are fully
vested).

Over the years, I have heard hundreds of excuses for not taking
advantage of an employer-matching plan. All those reasons can be
summarized in two words: ignorance and neglect. If you didn't
know that before, you know now. If you are not currently taking
advantage of your employer-matching plan, run-don't walk-to your
plan administrator and begin the paperwork to take advantage of
the employer match. Matching contributions are most commonly
found within Section 401k, 403b, and 457 plans. Even if your
employer is only willing to make a partial match up to a cap, you
should still take advantage of this opportunity. A fairly common
agreement is that the employer will contribute 50 cents for every
dollar up to the first 6 percent of salary you contribute. Don't
grouse that it is not enough or not worth it. You have everything
to gain-this is free money that will compound and grow-and as
Einstein said, "The most powerful force in the universe is
compound interest."





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As one of the country's top IRA experts, James Lange, has 
developed tax-savvy retirement and estate plans for over 800 
U.S. citizens with appreciable assets in their IRAs and 401(k) 
plans. In his book, Retire Secure! Jim systematically proves 
you can be tens of thousands to over a million dollars richer 
by "paying taxes later" and using Roth IRAs. Get the absolute 
maximum from your IRA and retirement plan and avoid a host of 
disastrous mistakes by going to http://www.retiresecure.com


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