Investing by Inertia

By Ramesh Akkineni

from an article in Financial Express

• Approaching employees to increase their contribution to a retirement plan well in advance of the expected salary increase.

• If an employee signs up, his contribution to the plan is increased with the first post-raise paycheck.

• The contribution rate continues to increase with every raise until it reaches a preset maximum.

• The employee can opt out of the plan at any time.

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