1 katrina works for pennys pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000…

1 katrina works for pennys pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. in her available to save for retirement. what should she do? a save the $150/mo in a bank account until she has enough to max out her 401(k), and then invest b contribute the full $150/mo to the 401(k) because her company will match that full amount, \doubling\ her investment c contribute $75/mo to her 401(k) and $75/mo to an ira, so that shes diversified d opt out of the 401(k) plan since she doesnt have much to contribute; use the money elsewhere in her budget

1 katrina works for pennys pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. in her available to save for retirement. what should she do? a save the $150/mo in a bank account until she has enough to max out her 401(k), and then invest b contribute the full $150/mo to the 401(k) because her company will match that full amount, \doubling\ her investment c contribute $75/mo to her 401(k) and $75/mo to an ira, so that shes diversified d opt out of the 401(k) plan since she doesnt have much to contribute; use the money elsewhere in her budget

Answer

Brief Explanations:

A 401(k) match is a great benefit. If the company matches up to 3% of salary, contributing the full amount available ($150/mo here) means the company will match it, effectively doubling the investment. Diversifying with an IRA is not the best - first step when there's a free match available in 401(k). Saving in a bank account won't earn as much as a 401(k) investment, and opting out means missing out on the company - match.

Answer:

B. Contribute the full $150/mo to the 401(k) because her company will match that full amount, "doubling" her investment