CHAPTER SEVEN
Choosing How You Save
“There are three constants in life: change, choice, and principles.” ~ Stephen Covey
T
he single biggest decision you’ll make when it comes to sav- ing for your future is the decision to save. After that, the biggest choice you have is how you’re going to save. You might remember some of the shortcomings we discussed about the most common ways to save, namely traditional 401(k)s and IRAs, which accumulate tax-deferred; and Roth 401(k)s and IRAs, which accumulate tax-free. Do you remember how I started this book? Go back and read the first sentence of Chapter One. Go ahead. I’ll wait. That’s right: I did it wrong. This entire book grew out of my frustration at saving the wrong way in my 401(k) and my desire to help people like you avoid those same mistakes. There are many, many ways you can save for the future. You already know about some of them: 401(k)s and Roth IRAs. Or maybe you’ve never given them much thought at all and just saved in whatever your company offered. Maybe you’ve never saved for retirement at all. But even with the most common types of retirement savings, knowing what your money and growth might look like years
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