Each month we ask you to write in with your questions about finance. Our expert, Maggie Murphy, has been an investment consultant for 15 years in the New York area. She will respond to your questions every other month. Email us any time.

Dear Maggie,

I am eligible for a 401k plan at work. I don't expect to be at this company very long, but my boss says this is an important benefit and I should consider it. If I do this, how much should I put in (I can't afford much) and what happens if I leave the company?

Sincerely,

Restless in LA

Dear Restless,

Statistics show that employees no longer stay with one employer for the duration of their careers. 401k plans are company run retirement plans that are employee funded. All contributions are payroll deducted and all the money you put in the 401K is always yours. If your company matches your contributions, the matching funds are also deposited with the payroll. Often, when there's a match, invariably there is a vesting period (up to five years). This means if you are not employed by them for at least the vesting period, you don't keep their matching money (remember you always keep the money you put in). 401ks are great! Usually you don't miss the money if it happens before taxes, and it can lower your income tax bill while saving for retirement. It is a great feeling to know that you really can save! The best part is that the money you put away in your 20s and early 30s is in there the longest! You will make more on that money than you will on the money you save in your fifties. The value of $1 at a rate of 10% over 30 years is $17.00. Can you afford to save a few dollars a week? Can you afford not to?

Note: The investments you choose are the keys to your success. Choose different types of stock funds for your contribution. If you feel that the investment choices are not varied enough or lag behind similar investments, then talk to the plan administrator about expanding or changing the investment company handling the plan.

--Maggie