Obviously, as citizens or residents of the United States of America, retirement planning/saving account is cogent issues towards maximizing your financial future/security to fullest. And investment in gold bullion is the safe haven through the mechanism of utilizing proceeds of the 401k.
This might be a strategic or challenging decision for young employees/graduates but a watchword for them is to keep their “credit life” (Credit Cards) very low and make provisions for the “rainy day” by signup to their employer’s 401K.
Bolts and Knots of 401K
401K is retirement savings/investment account whereby the employees set aside certain part of the monthly salary before tax. Majority of the employers have this package or corresponding equivalents for their employees for the purpose of enhancing long term savings.
Almost every contract have the pros and cons, 401K also is not exempted. The identifiable merits of 401K are highlighted below;
1. Deferred taxation. The contribution from your salary towards the 401K is deducted at source before taxation. Therefore, it is tax-free at the time of contribution but the tax applicability is deferred to later years when you are cashing out of the system.
2. Reduction in taxable income. Sequel to number one above, because