Next up is avoiding dipping into savings, followed by: diversify, make use of educational and advice tools or services available, consider target-date funds and other automatic features, look into a Roth 401(k), listen to presidential candidates’ ideas about tax breaks and other retirement savings ideas and, finally, stay on course by periodically reviewing and, perhaps, rebalancing holdings.
“Whether you are planning to retire next year or 40 years from now, it is crucial that everyone review their 401(k) investments on a regular basis and take advantage of the services provided by employers,” said Catherine Miller, vice president of 401(k) education at Charles Schwab. “Knowing what to look for and being proactive goes a long way toward ensuring that you’ll be ready for retirement.”