Most large and many medium-sized companies offer their employees a 401(k) retirement plan. These plans come with a number of benefits, often including a matching contribution from your employer, which makes them well worth contributing to. In many ways, the 401(k) is the best way for most people to build up a retirement nest egg with the best return for the money contributed.
But one of the challenges is knowing which funds at your disposal you should contribute to. After all, the kinds of returns you can expect can vary greatly from one fund to the next, as well as the short-term risk of losses, and a litany of things that must be considered based on your age, your other retirement savings, and how many years you have before you plan to retire and start taking money out.
Picking the right funds can make a massive difference in how much money you have when you retire. Image source: Getty Images.
Source: Fool.com