No, a 401(k) is not actually a cheeseburger.Simply put, a 401(k) is a long-term investment tool designed to turn a small amount of money today and tomorrow into a lot of money for a comfortable retirement. Because, if you spend all of your time working to pay the bills, living paycheck-to-paycheck, what are you supposed to live on when you retire?
Your 401(k) helps you do just that:
A small percentage of your pay is invested in a group of stocks called a mutual fund.
Historically mutual funds average about 8% annual growth. The longer you leave your money in, the more your 401(k) grows. In fact, there are hefty tax penalties if you take your money out before the age of 60. The sooner you start and the longer you go without touching it, the greater your returns.
How do these numbers affect me? Get the cheeseburgers already!
- Ōnin matches your contribution up to 3% of your wages.
- You control how much risk your fund allows (higher-risk funds can produce higher earnings, but there’s, well, more risk).
- The money you invest is yours. If you leave Ōnin, your money goes with you.
- This program is administered by Voya, a highly respected, reputable fund manager.
- Voya offers exceptional resources to help you make informed decisions