The 401(k) Book: Your Last Best Hope for Retirement Savings!

Sasanow, former assistant director of communications at Ernst & Young and now a freelance writer, stresses at the outset that most people have no concept of the vast sums of money they will need to accumulate before they retire. What's the answer? Obviously, people should start saving for retirement earlier and save more; and the best way to save is to make the most of 401(k) plans. These retirement plans--now offered to some 20 million Americans--feature simple but spectacular benefits. Contributors pay no taxes on the money in these plans until the money is withdrawn, and many corporations match some percentage of employee contributions. An added benefit for the many people who insist they can never set aside money on their own, contributions to a 401(k) plan are made automatically through paycheck withdrawals, thus making the savings virtually hassle-free. In clear language, Sasanow explains how these retirement plans work and how to maximize plan holdings. He discusses the investment options available in 401(k) plans and how to select the right ones according to the degree of risk of each choice. Sasanow also tells readers what to do when they retire or leave an employer and how to rollover the plan holdings without having to pay a substantial penalty. Considering that only about 25% of the workers eligible to participate in 401(k) plans do so (in part because the plan options can be intimidating), this book should find its audience among the many readers seeking understandable financial advice. (Jan.)