What to do with your 401(k)? Consider these three options

March 3, 2021

Saving in a dedicated retirement plan is a great way to help ensure that you have enough money to cover your expenses once you stop working. And if your employer offers a 401(k), it pays to sign up for it. Not only are contributions seamless – they're deducted from your paychecks so you don't have to make any effort to get that money into your account – but many companies offer matching programs that help you score free retirement cash.

But if you want to put your 401(k) to good use, you'll need to invest it. And here are three options to look at in that regard.

1. Target date funds

Target date funds are mutual funds that adjust your investments over time to meet a specific objective or milestone. With a retirement target date fund, you'll generally see more aggressive investments when that stage of life is years away, but over time, that fund will shift toward safer investments as retirement nears.