[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]
Editor's Note: This post was published at the Festival Of Under 30 Finances #21
We were wondering whether it would be a good idea to make enrollments in the 401(k) retirement planning automatic. More so for new comers to the job force who are not so aware about personal finance and retirement planning. It is a common phenomenon that fresh graduates while away their earnings from the first few years in buying stuff that they have had on their wish lists for years and paying off their education loans!
The initial years are very crucial for saving a great nest egg due to the power of compounding. Say the enrollment in 401(k) plans are made automatic. This would insure that a part of the salary is deposited in it right from the first pay check that we earn. Consequently we have a feeling that the average savings would be invariably higher than their present rates.
We generally do not miss the money we don't see! And the greatest advantage of this process is that the nest egg takes birth when we are very young and the power of compounding gives us a way head start.
Do you think that this new revolutionary yet easy and simple method would increase the national savings rate?
We found a survey which voices our views. Here is the video for you (in case the embedded video does not appear here is the link to it).
We were wondering whether it would be a good idea to make enrollments in the 401(k) retirement planning automatic. More so for new comers to the job force who are not so aware about personal finance and retirement planning. It is a common phenomenon that fresh graduates while away their earnings from the first few years in buying stuff that they have had on their wish lists for years and paying off their education loans!
The initial years are very crucial for saving a great nest egg due to the power of compounding. Say the enrollment in 401(k) plans are made automatic. This would insure that a part of the salary is deposited in it right from the first pay check that we earn. Consequently we have a feeling that the average savings would be invariably higher than their present rates.
We generally do not miss the money we don't see! And the greatest advantage of this process is that the nest egg takes birth when we are very young and the power of compounding gives us a way head start.
Do you think that this new revolutionary yet easy and simple method would increase the national savings rate?
We found a survey which voices our views. Here is the video for you (in case the embedded video does not appear here is the link to it).
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