One of the big things that people looked for years ago was a 401k Plan Retirement. It was a way for people to have their money managed so that they could, when they retire, have some money. Unfortunately, with the average debt being over $4,000, investing in a Small Business 401k or any 401k might not be the best idea.
If you have a lot of debt, you want to pay off that first. The interest will begin to really attack at your money so whatever you’re making in your 401k is irrelevant because you’re spending so much on interest. Rather than dealing with the 401k Administration, deal with the interest.
Here’s a scenario: if you put five thousands a year into your 401k, you’re going to have a lot of money saved up for retired. Say, $150K when you retire. But, if you have $15,000 in debt and you don’t pay that off, what you’re going to find is that the $15,000 will wind up turning into $30,000 or even $40,000 of debt because of the fact that you’re not paying it off and the interest is beating you up.
401k’s are a great investment; however, get your credit card debt down first. Getting that to disappear is far more important than having a 401k. And once the debt is gone then you can invest. If you work hard at getting rid of debt, you’re going to be able to invest in other things faster.