Are you thinking about your employees’ retirement? It is not too soon for wondering about this moment. You know they will have to stop working as an active employee someday. You can help them by contributing into their 401k investment. Of course, you are not the only one who has to cover this. You have to match the contributions you can afford to with the amount of money the employees can offer.
To find out, how much funds you need to contribute, regarding the percentage match, you can use this free 401 Calculator. It is a simple tool you are able to create using MS Excel. To start using this template, you need to consider the annual salary of the related employee, the expected increase, your match, average annual interest rate, withheld salary for 401k and other related information to count the amount of funds both you and employee need to contribute. The calculation on a table will cover the balance, salary, your contributions, employee’s contribution and earned interest. All of them will be ended with the total final balance after this employee retires.
After making the calculation, you can get a visual view of this contribution for an employee’s 401k investment for his retirement. You will find out the exact percentage of funds you can afford to and see its balance distribution. The growth of the annual balance will be easier to read on a chart too.