It’s the New Year! It’s time to check up on your 401K

Updated: Jan. 3, 2020 at 6:01 AM EST
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RICHMOND, Va. (WWBT) - So you want to be a millionaire? The best way for middle America to get there is a 401k.

Start early - put as much money away as you can. It’s the best return on your investment. It’s a simple concept really, the more money in - the faster it grows.

Make sure you take advantage of any company match, don’t leave money on the table. If your employer will match the first 3% - do it.

Michael Joyce with the Richmond financial firm Agili says when his two oldest sons entered the workforce he told them to immediately put 10% of their salary into the 401K. If you never see that money in your actual paycheck, then you won’t miss it. And if you are on a limited income, he has some advice. Start off by setting aside a modest amount, maybe three or 4%.

“From there maybe just add one percent more every six months and just keep doing that and until it hurts. And if you can do that you’re really going to build long term financial security,” said Joyce.

If you get your kids to start early and be diligent about putting money into that 401k, it’s possible to get to a million by retirement age.

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