Fill out the enrollment form below and get it to Donna Pease to get started. For more information see the summary link or ask your manager
Let's say you've started your first job with the Michael’s Automotive Group. Or, maybe, you've simply started to think about saving for retirement after working here for awhile. As an employee benefit Michael’s offers you a 401(k) plan, but you don't know where to get started (or even what that is). So, this won’t take long, here's what you need to know to get started.
What Is a 401(k) anyway?
To put it in really general terms, a 401(k) is a retirement savings account offered through your employer.
You set aside a certain amount of money each month from your paycheck into your 401k account. Sort of like a bank savings account. You decide how much you’re going to save and you use it to invest money through this account. You have the option of investing in a variety of different assets (i.e. stocks, bonds, mutual funds) and the provider helps you with this. Over time, your money grows and grows and grows so when you retire, you'll have a big stack of money that's been growing for years and you haven’t even missed it automatically coming out of your pay check. The best part is you are kept from spending it until you really will need it.
And get this, all the money you earn from your 401(k) investments isn't taxed until you withdraw it and hopefully that will be after you've retired and you won’t pay as much in taxes as you do now!
Why Do you Want One?
Saving for retirement is boring, but it’s really important, and you should do it as soon as you can. Saving even $50 a month can do amazing things to pay yourself later after you retire and don’t want to have to earn a paycheck anymore.
With a 401(k), Michael’s offers to match 2 ½% of some of your 401(k) contributions. This is FREE MONEY. You just got a raise for being smart enough to invest in your own future and since the money you invest is "pre-tax," you can actually reduce your annual taxes! What’s wrong with any of this?
(Of course, you'll eventually have to pay taxes on this money when you retire but it will be less than you will pay now because you will be retired.)