A 401(k) plan is designed with retirement in mind. For younger employees, hearing the word “retirement” can seem like a lifetime away, but the cliché is true – it will be here before you know it.

Taking advantage of a 401(k) is a great way to plan for your retirement and if you’re not familiar with 401(k)s, read on to learn more.  

Let’s Talk Saving for College 

According to Educationdata.org, the cost of attendance at an average public 4-year institution in Ohio is $24,423 for in-state students. Considering this staggering figure it’s no wonder that many parents want to get a kick start on saving.  

Thankfully there are many options to save for college, including 529 plans, custodial accounts, Coverdale ESAs and gifting funds.  

Starting early is the key. Opening an account when a child is born and investing $5,000 a year could potentially grow to $200,000 by the time the child is ready for college.

Delaying saving until the child is 12 bumps up the annual savings needed to over $25,000. (This is estimating an 8% rate of return for illustrative purposes.)