Your 401(k) Investment Strategy 

Your 401(k) Investment Strategy 

Date: February 25, 2020,

For young people in their 20s and early 30s, retirement can feel–and indeed is–a long way off. But that doesn’t mean that you shouldn’t start saving for retirement now; in fact, the opposite is true. The more that you start saving now, the better off that you will be by the time you’re ready to stop working. Here’s how you can start on the path to having enough money to retire by the time you’re 65–

Just Put Money Away (and Start Early)

The very first thing that you should focus on when saving for retirement is to just put money away, any amount of money. Even if you can only afford $10 a month, over 30 years, that money will grow, giving you a nice little (yes, little), chunk of change. If you’re bad about holding yourself accountable to saving, set up a direct deposit account. 

The other tip is to start putting money away early. That doesn’t mean it’s too late if you’re in your 40s, but it does mean that if you’re in your 20s, you should heed this advice.

Maximize Your Employer Match

Many employers will match up to 50 percent of an employee’s 401(k) contributions and, sometimes, even 100 percent, up to a specified maximum. Take advantage of this. If you’re not maximizing your employer match offering, you’re giving away free money

Don’t Pigeonhole Yourself into One Investment

You may feel like merely having a 401(k) is enough, or you may be very happy to take advantage of your employer’s discounted employee stock purchase plans. However, be careful about putting all of your eggs in one basket. It’s smarter to diversify by not heavily concentrating on one particular stock. And, you may want to consider additional and supplemental saving options, such as a Roth IRA in addition to your 401(k). 

Turn to a Professional for Advice and Guidance

One of the biggest mistakes that people make when trying to grow their wealth and understand their investment options is that of failing to turn to a professional for advice. Investment Advisor Representatives (IARs) and Certified Financial Planners (CFPs) are seasoned in smart financial practices. If you’re unsure about where you should be investing your money, how much money you should be investing, or how to save otherwise, a professional can answer all of your questions.

To learn more about 401(k) options and how to start saving for your future now, reach out to the team at Harvest Financial Planning, LLC by phone or online today. Our experienced professionals can offer you the advice, guidance, and counsel you need. 

(The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.)

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