Set yourself up for success with these top 4 tips for 401k plans.
1. Enroll in the plan! You got to be in it to win it!
2. Maximize the Employer Match – It’s free $$$. For example if your employer is matching 50% up to 6% make sure you contribute at least 6% to get the full match.
3. Increase your contribution every year…I know we all have bills to pay so pace yourself. Increase your contribution 1-2% annually with a goal of saving 10-15% of your pay over time.
4. Use the Target Date Fund in your plan (If Available). If you aren’t sure how to invest your account consider a Target Date Fund. Target Date Funds are asset allocated and well diversified. As you get older and closer to retirement a Target Date Fund will automatically move your allocation to more conservative investment mix.
DISCLOSURE – NOT ALL TARGET DATES ARE THE SAME AND SOME ARE MORE AGGRESIVE THAN OTHERS. PERFORMANCE ISN’T GUARANTEED.
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