Screen Shot 2015-02-04 at 1.38.48 PMIf you were to ask a Miami tax preparer or any other finance professional how to ensure a comfortable retirement, their answer would most likely be to enroll in your company’s 401(k) program. This tax-advantaged account is a must for any employee no matter how small or large their salary may be. Take these steps to build up your 401(k) as much as possible.

Contribute as Much as You Can

It goes without saying that contributing more will give you a bigger nest egg for your retirement. It’s particularly important to do so because the money in a 401(k) works for you through the investment vehicles of your choice. This means that you’re not only saving more but also earning a greater return. An easy way to do this is to simply increase your contribution rate every time you get a raise.

Make Sound Investments

Although the range of investment options will vary from one 401(k) provider to another, it is usually possible to create a diverse and balanced portfolio. Employees can typically choose from a blend of mutual funds, index funds, stocks, and more. Research each option carefully to get an idea of how it may perform in the future. You’ll also have to assess your level of risk tolerance; it will vary greatly based on your income, age, and other factors. One option is to enlist the help of one of the accounting services in Miami; the cost of this professional advice is usually well worth it.

Take Advantage of Employer Matching

Nobody in their right mind would turn down free money, but many employees do exactly that when they fail to collect the biggest employer match possible. Employer matching is when the company contributes an amount equal to the employee’s own contributions up to a certain percentage of their gross pay – usually six percent. If you do not contribute the full amount, you are passing by some very easy money. Be sure to contribute at least enough to get the maximum employer match.

A 401(k) is an incredible opportunity to save and invest for your golden years. Every employee should put in as much money as they can, diligently compare the investment options, and collect the greatest possible employer match. Your nest egg will grow faster than ever when you follow these tips.