The article emphasizes that merely contributing to a 401(k) isn't enough for a comfortable retirement. Participants must strategically manage their investments to promote growth, particularly through diversification and risk assessment. While target date funds may offer a simplified investment option, they can underperform due to conservative asset allocation. Therefore, investors should actively select investments that align with their retirement goals, especially if an employer provides matching contributions to maximize benefits. A financial advisor may assist in making informed choices.
You'll often hear that if you want to retire comfortably, you'll need to build some savings. You can't expect to manage your bills with ease in retirement on only a monthly Social Security check.
But it's not enough to make contributions to a 401(k) plan and call it a day. You need to make sure you're investing your savings strategically so that your money is able to grow nicely over time.
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