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  1. 401k

    A 401(k) is an employer sponsored investment account that allows employees to contribute a desired percentage or amount of income towards retirement. Your contribution to a 401(k) is tax deferred, which means you do not pay taxes until retirement. Many employers will match employee contributions up to a certain level, which can be an attractive benefit that allows employees to add more funds towards retirement.

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Reprinted from www.pcmag.com, June 20, 2008, with permission. Copyright © 2008 Ziff Davis Media Publishing Holdings Inc. All rights reserved.