Can You Answer These Questions About Your 401(k)?
More than 3 out of 4 Americans expect their 401(k) plans to be their most important income source during retirement, according to a 2015 Guardian survey. If you're counting on your 401(k), you'll need a balance well above the national average of around $92,000, which would provide less than $3,700 in annual income.
Relying on a 401(k) can be smart, since you get great tax breaks and can automate contributions from your paycheck to make saving simple. But you only will build a big enough balance in your 401(k) if you're proactive. This means, first and foremost, knowing the current state of your account.
To make your 401(k) the major source of retirement income you're hoping it will become, answer these four questions now -- and make sure the answers are good ones.
Source: Fool.com
