5 Common 401(k) Mistakes to Avoid in Your Retirement Planning
So, what exactly is a 401(k), and why is it such a big deal in the world of retirement planning? Well, think of it as your personal savings vessel, tailor-made to sail you smoothly into your retirement sunset. Named after the section of the U.S. tax code that brought it into existence, the 401(k) allows you to save and invest a portion of your paycheck before taxes are taken out. This pre-tax advantage means you can grow your retirement nest egg more effectively, as your investments have the potential to compound over the years without the immediate tax bite.