How to Maximize Your 401k

If you start with $1,000 and invest an additional thousand each year, you earn about 10% annually. When you retire, that money's going to turn into over half a million dollars. 401k matching is literally your company saying, here's some extra money for your retirement. There's another reason to take advantage of a 401k and to max it out because it's deducted pre-tax. It actually lowers your adjusted gross income, which means you'll pay less taxes the more you contribute to your 401k over the year.