ou need to know this number: $18,433.That's the median amount in a 401(k) savings account, according to a recent report by the Employee Benefit Research Institute. Almost 40 percent of employees have less than $10,000, even as the proportion of companies offering alternatives like defined benefit pensions continues to drop.
Have we become so dependent on government to take care of us that we can't save a little each month? If for no other reason, everyone who has a company contribution should be saving at least that minimal amount each month. That's free money you're passing on. Put it away and other than re-balancing your investments each year, FORGET IT EXISTS. And if you are scared of the market, put all your money into a government bond fund. You only earn 2% to 3% interest, but you will not lose it.