If your employer offers a 401(k) plan, it’s a great idea to contribute, because you can invest money in a selection of mutual funds, and any money you put in gets deducted from your taxable income. Plus, most employers will match contributions up to a certain amount — in other words, free money. Thus, a $200 contribution each month could mean $400 invested. That’s $4,800 a year that can grow into a hefty sum for retirement.
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