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Should you open a 401K at a short-term job in Georgia?
How long it will take for a company's matching funds to vest is one consideration when you're deciding whether to open a 401K at a short term job in Georgia, according to financial advisors at St. John & Associates in Roswell.
Everyone needs to at least think about retirement, and the 401K option available only through employers is pretty appealing. Contributions are automatic and come out of your paycheck and are tax-free until you withdraw them. But what about people who are working a job in Georgia short-term?
According to Roswell-based financial adviser Richard J. St. John of St. John & Associates, Inc, this would make sense in some situations. And in other instances, a 401K wouldn't work at all. Here are his thoughts on both scenarios:
RELATED: 4 myths about retirement in Georgia
2 reasons to open a 401K at a short-term job
- The employer match
- The investment diversity
2 reasons NOT to open a 401K at a short-term job
- It may reduce your salary too much
- You may not be around for the employer matching to vest
