Retirement is a period of life that we have to plan for in our youth and middle age. A 401K retirement plan is the best resource to do that, but surprisingly only two-thirds of Americans are investing in them, according to the U.S. Census Bureau. Financial planning advisors are knowledgeable mediators between your finances and the national economy, helping you earn the most growth from your money by strategically investing it. Here are three key reasons why you should invest in a 401k.

It's Effortless

Employer onboarding programs will prompt you with a percentage that you'd like to remove from your paycheck and invest in a 401K account. Often employers will match your investments up to a certain percentage, say, 4%-15%. Each month your money will automatically enter the account and begin to grow. Over time, as more and more money is added to the pool, the rate of growth increases and sets you up with savings for retirement.

It Compensates When Social Security Isn't Enough

Everyone of age 59 and above is eligible to collect social security and the amount you can collect increases over time. But these monthly payments are not enough to cover the entire cost of living. They may, however, help with travel and vacations and eating out at restaurants. Financial planners anticipate this idea and help you to get your money growing into larger amounts by the time you need to withdraw it in retirement.

You Can Roll the Money Over

To avoid paying tax on your money, your financial planners may help you move your money to an IRA account when you change jobs. This can protect you from losing precious savings in the long run, as IRAs are accounts that you can withdraw without paying tax. The great thing is that your 401K advisor will be monitoring your accounts and their progress for you, so this can be a relatively passive investment strategy that doesn't require a lot of time or energy from you.

We all want to travel when we're older, and planning for retirement with a proper 401K account is the best way to achieve that. These accounts can help you avoid downsizing your home or selling your assets if you do not wish to in retirement. Whatever your age, it is never too early to start investing. The earlier you begin, the more growth you'll see over your lifetime! Set up a meeting with a financial planner at Paul F Muret Investments PLLC today!