The Money with Katie Show Common 401(k) Mistakes to Avoid: Fees, Being Overly Conservative, and More
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Mar 2, 2022 Explore the pitfalls of 401(k) management and discover common mistakes that could cost you in retirement savings. Learn about misconceptions surrounding investment choices and why low-cost index funds might be your best bet. Uncover the importance of understanding fees and asset allocation to maximize your savings. Hear personal stories of investment missteps that emphasize the need for vigilance. It's a treasure trove of tactics for young investors aiming to secure their financial futures!
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401(k) Accounts Are Just Containers
- Our brains treat retirement account buckets like the investments themselves instead of tax-protected containers.
- Katie Gatti-Tossan warns you must still pick what your money is invested in inside a 401(k).
401(k) Options Can Be Limited And Weird
- 401(k) plans typically offer a limited menu of options and sometimes strange choices.
- Katie Gatti-Tossan explains options can include company stock, annuities, index funds, and target date funds.
Young Savers Often Under-Risk Their Accounts
- Many young people end up far too conservatively invested inside their 401(k)s by default.
- Katie Gatti-Tossan shares examples like 20-somethings in near-retirement target-date funds or cash equivalents.