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Maximizing Your 401K Limits

Saving up for your retirement is very important. This is because you have no source of income once you retire. Of course, no one wants to live off welfare, especially when one retires. Your retirement years should be the time you generally enjoy what is left of life. You cannot do this without money.

Generally for Americans, Social Security supports retirees. But in this day and age, one cannot simply rely on Social Security Insurance. It is important to have a retirement plan of your own, like a 401k account. You can do so many things with your 401k account. Once you near your retirement, one thing you can do it to maximize your 401k limits and contribute more money.

So why contribute more money into your 401k account? The answer is simple. The more money you have in your account, the more it will grow. You see, in a 401k, your money grows as it is invested in mimicked mutual funds. The more money you have in there, the more you will earn in the long run. That is why it’s important to maximize your 401k limits. Basically, your 401k funds are $5,500 for regular contributions and $16,500 for catch-up contributions. If you want to maximize your 401k, track your contributions and then match them up with your 401k funds.

When you retire, you should have the financial capability to do whatever you want to do. You cannot be limited by finances. Moreover, you should have a safety blanket in case something bad happens in the future. If you aren’t able to use this in your lifetime, don’t worry. Unlike Social Security, this fund can be given to any beneficiary of yours. It’s important to secure your future, especially in these trying times. It’s important to maximize your 401k limits.

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