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The Original 1% Club

[/fusion_text][fusion_text]For as long as I can remember, okay maybe 10 years, my sister Kathleen has been promoting the 1% club. This is entirely different than the ultra-wealthy 1% that the Occupy Movement rallies against. Both clubs are related to income, but Kathleen’s 1% club has nothing to do with making tons more money than everyone else. The original 1% club is made up of people who commit to raising their 401k savings by 1% each year. Ideally this coincides with a raise and you still end up with more take-home pay.

It takes a lot of money to retire someday. You should be saving 15% of your salary in your 401k as a starting point. Many people are not saving nearly enough, and getting up to a number like 15% savings is daunting. So we found a way to bridge the gap. Try increasing your savings by 1% each year, more if you can. You will be at a 15% savings rate before you know it.

If your company does year-end performance reviews, your opportunity for joining the 1% club is right around the corner. The key to your success is to be sure you increase your savings before the extra money ever shows up in your bank account. Your HR/payroll person can help you with this.

When you max out your 401k, that’s okay. Keep going with your savings in a regular brokerage account. Oh, and welcome to the club.[/fusion_text][separator style_type=”single” top_margin=”” bottom_margin=”” sep_color=”” icon=”” width=”” class=”” id=””][fusion_text]

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.

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