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+<br> That signifies that if you solely contribute three p.c of your salary, you are missing out on some of that free money. If you earn $40,000 per year, meaning contributing $1,200 (three %) would imply your employer is simply contributing (matching) $600 slightly than the $1,000 they would be putting into your account if you happen to have been contributing the full 5 % ($2,000). Missing out on a few of the employer match because you don't contribute enough - For example, say your organization matches 50 cents on the greenback up to 5 % of your wage. The concept is to spread out your investments to create a various portfolio. It isn't really useful to have greater than 20 p.c of your portfolio with one stock. Stock funds are usually categorized based on the size of the businesses they invest in. Large-cap funds invest in corporations with market values which can be more than $8 billion. Small-cap funds usually put money into firms which have a market value less than $1 billion.<br>
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