As 401(k) plans have become the predominant form of retirement investing among America’s workers, the level of conversation surrounding investment products and strategies has increased tremendously. Wall-to-wall coverage of investment markets on TV networks and advertisements of various investment products have increased this flow of information.
Rather than producing a working population of savvy investors, all of this information often leads to paralyzing confusion – “I don’t understand it, so I’ll deal with it later.” This paralysis means the retirement savings that should be working for you is either sitting on the sidelines making no return, taking more risk than necessary, or hasn’t been saved at all.
In an effort to cut through the noise, this post is the first of a four part series on how employees should approach their retirement plan strategy. The three keys to retirement planning are: 1) the amount of time you invest, 2) the amount you contribute, and 3) how your investment performs in the market.