If You're Counting On A 401(K) For Retirement These Are The Mistakes To Avoid First

A 401(k) is an effective retirement savings tool, especially when employer matching and tax advantages are considered. However, investors should avoid key mistakes like overlooking high fees that can diminish returns and borrowing from their accounts. It is advised to contribute enough to receive full employer match, and then consider IRA investments to ensure lower fees and greater investment options. This strategy will help optimize retirement savings and potentially provide better outcomes in the long run.

If your 401(k) has high fees, your best bet is actually going to be to invest only enough in it to earn your full employer matching contribution.

Investing in a 401(k) is a simple and effective way to save for retirement, especially with employer matching and tax benefits.

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