The 401(k): Retirement Fund Basics

“What is the best advice you can give potential participants about joining a 401(k)?

My advice will be:

• Contribute as much as you can afford to save, and then take baby steps to increase your contribution each year. Saving 1% more each year is the equivalent of saving 1 penny more of each dollar you earn.
• Invest in a diversified portfolio using low-cost index funds if they are available in your plan.
• The younger you are, the more aggressive you can be. Too often, people are too conservative and miss out on long-term growth.”

Read more from Ryan Klekar in “The 401(k): Retirement Fund Basics” on MoneyGeek.com here.