Freedom From BigBrother Now!

Stop Making Excuses -
See What $36 a Week Can Buy


If your company has an employer sponsored retirement plan such as a 401(k), 403(b) or 457 and you elect to not participate; you are doing yourself a major disservice.


1 out of 4 workers may be missing out on the best tax benefit available to them. Plans are particularly helpful at tax time because contributions throughout the year are made with pre-tax dollars, which reduce your current taxable income on a dollar-for-dollar basis. Despite this tax advantage, statistical data shows that 35 percent of those who were eligible to participate in a 401(k), still don’t.


Let’s review the benefits of each based on $600 a week salary, a 6% 401k deduction, and a 3% company match:

1. Tax savings - $600 at 6% ( $36 allotment each week) to your 401K will reduce your total tax obligation by $1,872. That translates to a savings of $524 at a 28% tax rate.

2. Company match - Annually matched at 3% is $18 per week for a total of $936. By not participating in your 401k, you are giving yourself a wage reduction benefit which most people would never sign up for. That is a 50% return on your investment and that’s tough to beat.

3. The longer you contribute the higher the value of your plan as you approach retirement.
Example: Based on the numbers above with no changes to the allotment and an annual return of 7% - 30 years would yield $265,245 if $2,808 were invested annually.


As the baby boomers get ready to retire, the cost of care is ever increasing, and the pressure is on the Federal Government to reduce costs by cutting benefits and raising the retirement age. Plan wisely and you will have a choice when it comes to your retirement!

ABOUT ACCC:
American Consumer Credit Counseling is a non-profit 501 (c)(3) organization dedicated to empowering consumers to regain control of the quality of their lives through financial education, counseling and debt management. ACCC provides individuals with the practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. For more information please visit www.consumercredit.com.

Tom Palange
Education Programs Specialist
American Consumer Credit Counseling
http://www.consumercredit.com
“Today’s Education is Tomorrow’s Success”