Monday, May. 02, 2011
Get Them to Sign Up For Their 401(k)
Most people don't have the discipline to set aside money each pay period and slowly build their retirement savings. That's especially true with 20-somethings, for whom retirement can seem a long way off. Paying for a fun night out right now might seem more pressing. So talk to your kids about putting their retirement savings on autopilot through payroll deductions that go into their company-sponsored 401(k) plan or automatic contributions to some other tax-favored retirement account, like an IRA. If your child says they can't afford it, consider helping them with enough money to at least capture the company match—the closest thing out there to free money.