Do you want to be a millionaire? Who doesn’t! However, the path to riches isn’t always clear. However, by using your 401K wisely, you CAN become a millionaire. Don’t believe us? It’s true.

The simple fact is, the vast majority of Americans simply aren’t saving enough for retirement. If you have an employer sponsored 401K, though, you are better off than most – if you are using it wisely.

A recent study by the U.S. Government Accountability Office showed that about half of Americans approaching retirement have NOTHING saved in a 401K or individual account.

Don’t let that be you. Here are some tips on how to use your 401K to get rich – and retire. Read on:

Start young

As soon as you get a good job with a 401K, START SAVING. Even if it is just a little bit each month. That money will grow due to something called compound interest. So what is compound interest? It’s the interest added to the principal of a deposit, so that the added interest ALSO earns interest.

Save more each year

If you are getting regular raises or promotions, make sure you are increasing the amount you are saving each time. Don’t start to live on the bigger salary – save it instead. Also, make sure you are taking advantage of your company’s 401K match AND contributing the max amount.

Watch out for fees

Some 401K plans have fees that can be costly. Make sure you know your plan and that you are in the best one for your retirement needs. A good financial planner can help with this, as well as teach you about other investment vehicles that could make you even more money.

By starting early, living frugally and investing wisely, you can become a millionaire and retire comfortably.

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If you have other questions about retirement plan loans, email us or call 937.308.0758.