Don't Overpay for 401(k) Investments. Use This Strategy Instead.

There's no denying that 401(k) plans are great resources for saving and investing for retirement. You spend your career contributing to a 401(k), with the idea that in retirement, you can live off those funds and let finances be an afterthought as you enjoy the fruits of decades of labor. Any contribution to a 401(k) plan is a good thing, but there are ways to be efficient with your investing to ensure you're maximizing your contributions. It mainly comes down to being intentional with your investment selections.

One of the downsides of a 401(k) is that investment options are provided to you; you can't invest in any stock you want like you can with IRAs. One investment option you're likely presented with is a target-date fund. Target-date funds are titled with a year in their name (like Target-Date Fund ABC 2050) because they're based on your projected retirement year. As you near retirement, these funds automatically reallocate the holdings to become more conservative.

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Source Fool.com