Avoiding a few common mistakes can be worth as much as picking the perfect investment.
1. Starting too late
Every year you wait costs you the most valuable compounding years. Start with whatever you can, then increase it.
2. Leaving the match on the table
Not contributing enough to get your full employer match is turning down free money and an instant return.
3. Cashing out when changing jobs
Withdrawing a 401(k) early triggers taxes and penalties and wipes out years of growth. Roll it over instead.
4. Being too conservative too early
Holding mostly cash when retirement is decades away can leave your money failing to outpace inflation. Match your risk to your time horizon.
5. Ignoring fees
High fund fees quietly eat returns over decades. Low-cost index funds keep more of your growth. Model your plan in the calculator.
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