Retiring Early

Wednesday, August 23, 2006

401(k) enrollment now automatic!

In a great move, the government has finally enacted a law to allow companies automatically enroll employees into their retirement savings plans in an effort to boost retirement savings. Read the full article here.

Most people know that being in an employer sponsored retirement plan is a great way to ensure a suitable nest egg, especially when your employer matches some or all of the contributions. Although it's not a mandate for companies, this has the potential to get a lot more people in the fold.

Although I have been very active in a 401(k) plan for most of my career, I have made a few mistakes along the way. 1) Not contributing at all for periods at a time, 2) Moving from investment to investment trying to time the market, but ultimately losing money, and finally, 3) taking a "loan" out of my 401(k) to fund the down payment on a condo.

Some might say that 3rd one is questionable, but it probably would have been better had I saved for the downpayment instead of living a highly consumption-oriented bachelor lifestyle. To be fair, that was at age 23.


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