The Importance of a 401-K

Often times in the dividend growth investing community, new investors find themselves throwing a ton of their cash at their dividend growth portfolios to increase the dividend payments as fast as possible. This is a great idea – it adds fuel to the fire and makes it burn that much faster until it’s a huge flame. However, sometimes these investors forget about the all too important 401k in lieu of simply adding to their own dividend portfolios first. This can be a huge mistake.

The stock market as a whole is a giant financial plan. Without it, retirement would be but a dream for a few and most would simply have to rely on meager savings that couldn’t grow even half as fast. Hell, even banks would have a hard time surviving without making money off of their investments. One of the best financial plans that utilizes the strength of the market is a company 401-K or stock purchase plan. If you have one offered at the business that you work in, this is one of the best places to stack your money, especially if the employer offers matching in any way to your contributions.