What to do with your 401(k), how to invest it

April 1, 2021

Mismanaging your 401(k) can be a very costly mistake, and plenty of people are confused or simply not confident that they're making the right decisions with their retirement account. Luckily, there are some basic steps to follow to ensure that you can get the right balance of safety and growth with your savings. People who contribute the right amount, save regularly, and allocate their investments properly will be able to retire without financial stresses.

How much should you contribute?

Many people simply contribute a default amount. Some set up a contribution when they first start off with an employer, then never think about it again. Automatic savings are great, but the best financial plans involve deliberate decision-making that reflects all aspects of a household's financial goals and needs. That sounds like a complicated approach, but it's very important.