100 Percent Investment Returns

100 percent investment returns

There are very few investment vehicles in the world of finance that offer a 100 percent return on investment dollars. Despite the lack of assurances that investment money will grow substantially over time, there is one avenue of opportunity that offers a consistent 100 percent return on money set aside for retirement.

As defined benefits plans have undergone significant transformations over the years, many companies have added an incentive for employees to set aside their own funds for retirement. A company offering a match on investment dollars in a 401k retirement contribution plan, for example, will typically offer a percentage-based matching of an employee’s contributed funds. The process of company matching is, in effect, and instant return on investor’s money.

If an employer match is 5 percent of an employee’s wages, for example, an employee can contribute up to 5 percent of their base pay into the retirement fund and receive another 5 percent contributed by the employer. That’s a 100 percent return on investment money – an extremely difficult return to match in the stock market. Adding an amount less than 5 percent into a retirement account will still be matched by the employer, but the employee will effectively be leaving money on the table that could have been added to boost retirement account growth even faster.

Whenever an employer offers a contribution matching incentive in a 401k type of retirement plan, it’s important to take advantage of the instant return on investment dollars in order to increase the opportunity for a more secure retirement.

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