July 28, 2016

EASY MONEY:

The easiest way to double your money (Chuck Saletta, 7/28/16, The Motley Fool)

You contribute $1,000 to your Traditional 401(k) plan.

Your employer contributes $500 as a 50% match on your investment, which brings the total invested on your behalf to $1,500.

When you file your taxes, your $1,000 contribution is excluded from your taxable wages. If you're in the 25% tax marginal tax bracket, that saves you $250 in taxes.

You do the math and realize that the $1,500 now invested in your 401(k) only cost you $750 in otherwise spendable money, doubling the money you've got working on your behalf.

Posted by at July 28, 2016 8:11 PM

  

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