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Be like Bill: Put money in a 401(k) nowBe like Bill: Put money in a 401(k) now By: GEORGE CHAMBERLIN - For the North County Times He's the wealthiest man in the world ---- worth more than $50 billion ---- and he still doesn't think he has saved enough for retirement. Bill Gates has built his fortune on the success of Microsoft, the software company he founded in 1975. He owns more than 1.1 billion shares of company stocks, which accounts for the vast majority of his wealth. And, at the age of 49, Gates has topped the Forbes list of the wealthiest people in America for more than a decade. Gates could have cashed in his billions a long time ago and moved to a tropical island with his family. But his entrepreneurial fervor has kept him active at Microsoft developing new technologies that have changed our lives. Although he has turned over the daily management of the company to Steve Ballmer ---- number 11 on the Forbes list and worth $14 billion --- Gates is now listed as the chief software architect at Microsoft. He just got a raise and now earns $620,000 a year. No doubt, that is a lot of money. But it pales in comparison to what some companies pay their executives. For instance, the CEO at Yahoo last year received total compensation of more than $230 million. And I bet you've never even heard of Terry Semel. Gates never pulled a giant paycheck from his company. Rather, he has accumulated his wealth through ownership. Last December, when Microsoft paid a special dividend of $3 a share, Gates got a check for $3.2 billion, which he immediately contributed to his charitable foundation. When Microsoft filed documents with government regulators last week, it described the financial activities of the company's top executives. Included in the filing was word that Gates contributed enough money to the company 401(k) plan last year to be eligible for $2,469 in matching company funds. So, a guy worth $50 billion is still pumping the maximum of $13,000 into his company retirement plan. That should send a clear message to every other worker out there who has been slow to jump on the retirement saving bandwagon. If the world's wealthiest man is taking advantage of free money from his employer, shouldn't you? The Profit Sharing/401(k) Council of America estimates that hundreds of thousands of workers who were eligible but did not contribute to employer-sponsored retirement plans left an estimated $30 billion on the table. That's free money they tuned down. The council estimates that the missed opportunity could result in a loss of $230,000 in savings and earnings over a 20-year period. That extra savings would have provided another $20,000 a year in retirement income. Sure, spending is more fun than saving. But the reality is that your financial future is totally in your hands. Find out from your employer how to get started as a 401(k) participant and how much they will match. That is the least you should do. If it means some belt tightening, so be it. I bet that Bill Gates is still the kind of guy who won't walk past a coin on the street. And he certainly isn't going to pass on free money from his employer. Neither should you. George Chamberlin is a regular contributor to the North County Times and also is a TV and radio commentator. Contact him at geoc1045@adelphia.net. Homepage Other open community sites http://www.business-business.biz Please support are sponsors. To design you custom retirement plan. http://www.retirement-plan.us For planning a IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management: National ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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