Whether they utilize Great-West Financial or not, all workers should start saving through 401(k) retirement accounts as soon as possible, says Forbes. The longer saved amounts linger in 401(k) accounts, the more interest the accounts accrue. Each saver should cultivate the habit of saving part of every paycheck.
Some employers provide their employees with 401(k) savings immediately after hiring, while others make new hires wait a few months, according to Forbes. Money invested through 401(k) is not taxed until it is withdrawn at a later date, which allows people to invest more during the early years of their working lives.
Each 401(k) plan is different, reports Investopedia. Therefore, annual 401(k) returns vary greatly from person to person. The 60/40 plan is common type of 401(k). This moderately aggressive investment plan puts 60 percent of funds in equity and 40 percent in debt and cash. Savers can adjust their individual 401(k) accounts to reflect their personal appetites for risk. High-risk plans have higher rates of return and are more common for people starting their working lives. Low-risk investing is more common for people approaching retirement age.
Great-West Financial is a financial services company that specializes in insurance and retirement savings products for public, for-profit and nonprofit employers, says Great-West Financial. The company is based in Greenwood Village, Colorado.