401k, IRA, 403b, 529…What does it all mean? The government loves acronyms, and every time there is a helpful savings program set up for ordinary people they usually name it after a senator or give it a code name. While the name doesn’t really matter, the savings programs do. When it comes to a 401k there are several things you should know:

• 401k’s are one of the best things to happen to employee benefits since sliced bread
• Employers will often match your 401k contributions (i.e. you can double your money immediately
• If you don’t take advantage of your 401k program, you’re missing out on a huge opportunity

As you can see, I’m a big fan of the 401k. To help explain the mechanics of 401k’s in greater detail, the Khan Academy has put together a great instructional video to walk you through the basics. We hope you enjoy this tutorial and walk away with a newfound respect for this amazing retirement savings vehicle.

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