How Does Your 401(k)'s Investment Mix Stack Up?
When offered by employers, workplace 401(k)s make investing for retirement easy. Workers can contribute with money taken directly from paychecks and won't be taxed on those contributions. In many cases, when employees contribute, employers even provide free money in the form of an employer match to help save for retirement.
However, there is one downside to a 401(k) compared with other retirement accounts such as an IRA that you'd open with a broker of your choosing. Workplace 401(k) accounts offer a limited number of investments to plan participants, and those investment options are chosen by the 401(k) administrator.
If you're putting money into your 401(k), it's worth considering how your investment choices stack up to the typical retirement account -- and whether this should impact your decision about how much to invest.
Source Fool.com
