{"id":220,"date":"2020-11-19T17:38:15","date_gmt":"2020-11-20T01:38:15","guid":{"rendered":"https:\/\/hispanabella.com\/?p=220"},"modified":"2021-07-27T21:52:27","modified_gmt":"2021-07-28T04:52:27","slug":"401k","status":"publish","type":"post","link":"https:\/\/hispanabella.com\/401k\/","title":{"rendered":"401(k)"},"content":{"rendered":"<p>Hola bellas! Have you thought about having enough money when you retire? How about having so much money that you&#8217;re able to retire early?<\/p>\n<p><center><iframe loading=\"lazy\" src=\"\/\/giphy.com\/embed\/8cPGBU2fpxUsxYAwHH\" width=\"480\" height=\"270\" frameborder=\"0\"><\/iframe><\/center>That would be amazing!\u00a0 Setting aside money in a 401(k) is a method you can use to start saving and investing money for retirement.\u00a0 A 401(k) is a saving and investing plan offered by employers.\u00a0 Your contribution is deducted from your paycheck every month, and the contributions you make are not taxed.<\/p>\n<h3><strong>Some of the benefits of contributing to a 401(k):<\/strong><\/h3>\n<p>\u2022 Lots of employers match a portion of the money you contribute. For example, many employers match 50%-100% of the money you contribute, up to 3-6% of what you earn annually.<\/p>\n<p>\u2022 Tax savings on contributions:<\/p>\n<p>The money you contribute is taken straight from your paycheck before the <a href=\"https:\/\/www.irs.gov\/\" target=\"_blank\" rel=\"noopener\">IRS<\/a> taxes it.<\/p>\n<p>Contributions can lower your income taxes. For instance, let&#8217;s say you earn $40,000 per year, and throughout the year, you contribute $10,000, this means that it will lower your taxable income.\u00a0 Your taxable income will only be $30,000, which will save you money by not having to pay taxes off of the $40,000<\/p>\n<p>\u2022 If you switch jobs down the line, you can take your 401(k) contributions with you, and you can roll it over to a new retirement savings account.<\/p>\n<p>Contributing to your 401(k) while you&#8217;re young and have fewer responsibilities is a great idea.\u00a0 The money you put in a 401(k) will grow a significant amount over time. To give you an idea, if you&#8217;re a 21-year-old who earns $35,000 a year and you contribute 6% per year ($2,100), and your employer matches 50% of your contributions, up to 6% with a 7% average <a href=\"https:\/\/hispanabella.com\/short-term-vs-long-term-investments\/\">investment<\/a> return, when you&#8217;re 65 years old, your 401(k) will be worth $869,737!!!! That&#8217;s with only contributing $2,100 per year! As you earn more, you can contribute more, and your 401(k) can be worth even more!!!<\/p>\n<p>Hispana Bella recommends you contribute the maximum amount that your employer matches to take advantage of that free money that your employer is giving you.\u00a0 I think that&#8217;s one of the regrets that I have.\u00a0 I wish I would have started contributing earlier, and once I started making contributions to my 401(k), I wish I would have made more substantial contributions to get the free money that my employer was matching.\u00a0 Think about it; how often does anyone give you free money to invest?\u00a0 Almost NEVER!\u00a0 Take advantage of that and no se duerman bellas (don&#8217;t fall asleep on that opportunity)!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hola bellas! Have you thought about having enough money when you retire? How about having so much money that you&#8217;re able to retire early? That would be amazing!\u00a0 Setting aside money in a 401(k) is a method you can use to start saving and investing money for retirement.\u00a0 A 401(k) is a saving and investing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/posts\/220"}],"collection":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/comments?post=220"}],"version-history":[{"count":0,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/posts\/220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/media\/1002"}],"wp:attachment":[{"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/media?parent=220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/categories?post=220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hispanabella.com\/wp-json\/wp\/v2\/tags?post=220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}