Do I invest for my 401K or not?

Well well well.... I would not have thought of being a person who would even be close to thinking of funding for the future. I was mostly the person who would go ahead and spend the money on my paycheck and make sure that I have enough for parties and new clothes during the week. But my friend insisted that I should invest money in my 401 K since that big news about the unsufficient funding ability of our beloved social securityby the time my generation of people decide to retire. Let me see the deal with 401 K is that they are not yet taxable unless taken out for some odd and good reason. If you have set up your own 401 K from your own bank or any other financial institution then you could take it out when ever you want but if you got it through your employer then you have to look at your employment packet on when you would be able to take the 100% vested amount. A good example is that my company has allowed us to take it out after 2 years of service. But why would you even do that if you are not ready to retire. It is a bad idea to take out your 401 K when you are not going to retire since you are going to be taxed on the year that you did it and trust me that would not be some small amount.

Let say you started thinking of investments for your retirement. They will always give you options of companies to invest in even though it is conservative companies meaning not much movements that would really hinder you from saving your money. You can treat this as practice if you want to learn going into stocks in the future. Most likely you just have to learn about the companies offered to you and see how they do every year. Make a wise decision cause this will reflect on how your money will grow. Sometimes it is wiser to spread your money around all the companies that they offer you so if one stock goes down it does not hurt you as much cause the rest of your investment will go up. But make your decision before the close of the market so you will not loose in anything. Timing is precious in these kinds of investments. Anyways I hope this is informative enough for you to at least get you to read and pay more attention on your retirement.