The awesome part is, if it’s a pre-tax deduction, you may also be able to drop yourself into a lower income tax bracket – saving you money on taxes – without decreasing your earnings. Which can mean even more money in your pocket come tax time!
Depending on your specific income level and current tax bracket, it is possible to contribute three percent of your earnings to a retirement plan without ever reducing your take-home pay each pay day. Of course, this won’t apply to everyone. But even if it doesn’t, will you really miss that extra $5 - $10 per paycheck if it’s taken out before you get your check?
Fast-forward to 2015. My retirement account from this employer had increased to almost $15,000 without another penny being added by myself or any employer. (All this despite the fact that the housing bubble burst right in the middle of this time and had a huge negative impact on my retirement fund for a couple of years – imagine how much money I would have now if the economy hadn’t tanked!) My personal contribution to this particular plan earned six times its original worth in just over a decade! Think of all the money I would have thrown away had I not participated in this optional retirement plan!
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But tuition reimbursement isn’t just for the young'uns. Have you ever thought about going back to school yourself? You probably have a million reasons why it doesn’t make sense. But to me, it doesn’t make sense not to if your employer is going to pay for it! So what if you only have time to do one or two courses at a time? So what if it’s going to take you ten years to finish your degree? The time is going to pass one way or another, so why not take the time to enrich yourself even if it’s just a little here and there?
Do you want to wake up one day ten years from now wishing that you’d found the time to go back to school? Or would you rather wake up to your graduation day ten years from now and be amazed at all you accomplished in those ten short years?
What benefits does your employer offer that you are not taking advantage of? Set up an appointment with your HR department today and find out just how much money you are leaving on the table!