Final answer:
To build her retirement and increase her savings, Rachelle should take advantage of her employer's 401(k) plan by contributing as much as she can afford each pay period. She can also consider using her overtime pay to further boost her retirement savings by either increasing her 401(k) contributions or opening an IRA.
Step-by-step explanation:
To build her retirement and increase her savings, Rachelle should take advantage of her new job by participating in her employer's 401(k) plan. A 401(k) is a retirement savings plan offered by many employers, where employees can contribute a portion of their salary before taxes. The contributions to a 401(k) are tax-deferred, meaning that the money is not taxed until it is withdrawn in retirement.
Rachelle should aim to contribute as much as she can afford to her 401(k) each pay period. Many employers also offer a matching contribution, where they will match a certain percentage of an employee's contributions to the 401(k). Taking advantage of this matching contribution is a great way for Rachelle to increase her retirement savings even further.
Rachelle can also consider increasing her savings by leveraging her overtime pay. She can allocate a portion of her overtime earnings towards her retirement savings, either by increasing her regular 401(k) contributions or by opening an individual retirement account (IRA) and contributing to it separately from her employer-sponsored plan.