During a recent review of a couple’s investments, I discovered that while both spouses participated in their employers’ 401(k) plans, they approached the savings vehicle very differently. She was an “active trader,” frequently tinkering with her investment lineup to capitalize on market moves. He had worked with the plan’s third-party adviser to develop a portfolio three years ago and hasn’t looked at it since. Truly, opposites attract!
My first reaction was, “Kudos to them for even participating.” Many employers offer plan participants a matching contribution up to a certain cap. Remember when you were young, and your parents said if you could save half, they’d pony up the other half to buy your car, a bike, or maybe a gaming system? This is the same concept. You jumped at the opportunity when you were a child. Why not take advantage of the same offer now?
The Gwinnett Daily Post is a daily newspaper published in Gwinnett County, Georgia, and serves as the county's legal organ. The newspaper is owned by Times-Journal Inc. and prints Wednesday and Sunday each week.