Q: If you were to advise co-workers about why they should contribute to (and/or maximize) their 401(k)s, what would you say? This is your chance to tell your story about why you “love” your 401(k). If your 401(k) plan has a match, be sure to explain how the match affects your participation, if at all.
A: Imagine being on the beach enjoying your pina colada on a weekday and then flying to visit your grandchildren on the weekend. Think about how you can spoil your grandchildren rotten. This is the life I want to have when I retire. Contributing to 401(k) when you get your very first job is the way to help you make these dreams happen. When I had my first job right out of college, I started to contribute to my 401(k). I was quite poor at that time and had student loans to pay back. However, I still chose to contribute to the 401(k). My employer offered a match so I was getting free money and I had no intention to turn down free money. In addition, the money was already taken out of my paycheck so I didn't really miss it. As I continued on my career and got my bonus and raises, I was able to max out every year. I now have a healthy 401(k) balance that I know I can retire comfortably when it comes time.