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Opening a 401(k) can be a big step toward saving for retirement, but a financial planner says there’s a mistake lying in wait

woman at work

  • Eric Roberge, a certified financial planner and the founder of Beyond Your Hammock, says too many people treat their 401(k) like a savings account.
  • 401(k)s are a powerful, tax-advantaged investing tool, and choosing how the money is invested is up to you.
  • Roberge recommends choosing either an all-in-one target date fund, which automatically rebalances itself, or building a portfolio of individual funds that provide appropriate diversification.
  • Visit Business Insider’s homepage for more stories.

Your office 401(k) may feel like an untouchable savings account, but it’s actually a powerful, tax-advantaged investing tool.

A whopping $5.3 trillion was held in 401(k) read more >>>

Source:: BusinessInsider.Com