Life Without Retirement Savings,Future Issues, Job Loss, Walmart 401k Tips
The Walmart 401k is a great product for Associates to start the process of planning for their retirement. Walmart makes a matching contribution of 6% of 50 percent of your eligible wages. Merrill Lynch is the company that controls the 401k.
If you ever needed to borrow from the 401k with no penalties, you can once you reach $2,000. You can receive a 401k Loan which allows you to borrow a minimum of $1000 up to $50,000, and pay it back at your own pace over years. The money you borrow goes directly back into your account, even the interest. You can also get a hardship withdrawal if you qualify and meet certain criteria. However you will incur taxes & a 10 percent penalty.
The Best Part of the 401k is the potential growth with compounded interest. As you save over time interest is built up and adds to your retirement account.
Depending on your age you can receive hundreds of thousands of dollars in compounded interest over time. If you put the proper amount of money into your 401k you can get close to $1 million dollars once you retire.
Why should you invest in the 401k?
1. Walmart Matching Contributions of 6%
If your 6 percent number is $56, Walmart will add $56 to match it for a total of $112 per check.
2. Pre Tax Contributions
You may set your 401k to 6% and put in $56, but because this is a pretax contribution your paycheck might only be reduced by $49.
3. Compound Interest
The money you have invested is reinvested and draws interest upon interest. This interest grows over time and may rival your personal contributions, even potentially exceeding them in some cases. This process helps your 401k grow over decades into a massive account.
To Test Out Your 401k Results Try One of these Websites:
The Only downfall to the future is that there is an unknown element that most people cant predict or adjust to. The cost of living is expected to go up, robots may take over many jobs, and climate change may force us to live differently. Inflation is sure to be a key factor in the future, as prices gradually increase. With the advancements in technology many items we use now may become obsolete. With the time we have today we have to take steps to build a better future for ourselves & family. The smallest step can lead to you climbing the biggest mountain. Watch as I time travel to the future to see what life would be like if I had no retirement savings when I retire.