401-K — Do I sign up?
Hi Terry. My question is my job offers 401k through my union, is it a good idea to get the 401k or not?
Terry Says
Oh yes, absolutely. Have them set up an automatic contribution out of your paycheck. You won’t miss the money — and it is a tax deduction. If you’re under 40, just have them put the money into the S&P 500 stock index fund (it’s in almost every 40l(k) plan) and don’t even watch the stock market. You have years to make the money grow — and there has never been a 20 year losing period. So just do it! It’s far more likely that you’ll have a lot of money in that 40l(k) plan 40 years from now than that you will actually get Social Security (and they deduct for that, too!)
