Welcome to SolidPlanning.com. Solid Planning is a site where our dreams, strategies, and hard work are combined to produce tangible results. On this site we will review books, tips, tricks, and strategies, looking for ways to build our plan to meet the 2009 goals posted in the far right column. As we make progress we'll bring you along with articles and stories on this site. We welcome your suggestions and feedback along our journey so please feel free to leave comments!

Jan 8, 2009

Don't Reduce, Increase Your 401 (k) Contributions

We have all heard and probably agree with the saying "buy low and sell high." However, a recent poll by AARP find that "nearly one in five respondents said they had stopped or reduced their contributions to their 401(k)". With the market at the lowest level in years right now seems like an excellent time to increase your salary deferrals. Once the market starts to rise again you may have missed out on some gains.

Our plan for 2009 is to fund the 401(k) to the maximum allowed. Our 401(k) plan allows us to contribute $16,500.00 in deferrals. This amount plus our matching contributions should help us recover some of the losses we experienced in the market downturn.

Pretax Salary Deferrals + Matching Contributions + Low Prices = Big Retuns in the Future?

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