The title says it all.

The slow and steady path of creating wealth has always worked in a long run. 401K & 403B(Non profit organizations usually provide 403b) plans offer a way for working class people to save money in a tax deferred account in a slow and steady way.

If you start early in life ( in your 20s) and contribute maximum to this plan you would be a millionaire by age 45 or so with around 8-10% return on investment. And good news is that you can get that much return from a very well diversified fund like any low cost index fund without spending too much on fee and without worrying too much about the market meltdown.

Here are the advantages of 401K or similar plans that you can't afford to miss:

• Pretax contribution and money grows tax free until you start taking out during your retirement (There is a difference between 401K and Roth 401K with respect to taxes).
• If your employer matches your contribution to any % then you are getting free money. When did you last get free cash?
• Autopilot keeps transferring money into your 401K account so there is no way you will ever miss it and your money will be transferred before even you can see it so there is no chances of splurging yourself with that nice "stuff" that you wanted.
• Your kids can get loan for college but you can't get loan for your retirement expenses.
• Retirement might seem far but it's right around the corner. Don't think that you still have many years to retire. Time flies and so does money with it if you don't take action.

So stop telling yourself that you will contribute tomorrow or later or after marriage or after your kid is born. Take the action and start contributing today. Time is money and lost time directly translates to lost money.

Your only failsafe way for having a nice post-retirement life is your retirement plan. Save, invest and have a peaceful rich life during the retirement.

Don't rely on Social Security or your home as a retirement paycheck.

Contribute to your 401K