Double your money

What if I told you that you could get a 100% return on a particular type of investment? That you could double your money, guaranteed? That no matter what, every $1 you put in would turn to $2 almost immediately? That’s a deal you’d be crazy to pass up, right?

This is something that is offered to millions of people, and many don’t take advantage of it. If your employer offers a 401k with a match, it’s available to you, and you should take full advantage of it!

What is it?

A 401k is an employer-sponsored retirement plan in the United States. It allows employees to contribute out of their paychecks to a retirement account, which can then be invested and with the miracle of compound growth is one of the easiest ways to set yourself up for a comfortable retirement. Many employers will offer a match on 401k contributions up to a certain limit. For example, if an employee contributes 5% to their 401k, their employer might match that contribution at an additional 5% making the total contribution 10%! Some employers will match more or less (E.g., an employer might match the first 3% fully at 100%, then will match the next 3% at 50%. Another employer might match fully at a higher %). Here are a few examples of what these might look like:

Now here’s what that looks like for someone making $50,000 per year contributing those percentages on an annual basis:

While it’s great that your money is being doubled initially with the employer match, the real magic happens over time with compound interest. Even the lowest annual contribution on that chart ($5,000 per year, or a total of 10% of the $50,000 annual salary in this example) can easily become a million or more dollars over a 30 or 40 year career.

Whatever your employer offers, we believe that you should take full advantage of it right away because this is one of the quickest and easiest ways to double your money.

Make sure that money is then invested in low-cost funds like index funds or target-date retirement funds.

We hope you have found this information valuable, thank you for reading.