We’re in the season now, aren’t we? The season of telling your employer your benefit choices for next year.
In belated celebration of Ted Benna Day let’s think through the 401k. The 401k is kind of like the Social Security system except that:
- Contributions are voluntary
- Returns tend to be much better
- The system is solvent
- The money is always yours
Unless you’re sure that the in-the-red Social Security system is going to become much more generous than it is right now, you should use your 401k to maximize your chances for a good financial future.