savings

7 ways to declare financial independence

Don't put 401(k) on autopilot
Don't put 401(k) on autopilot | LHJB Photography/Getty Images

Don't put 401(k) on autopilot

Your savings can be affected by what you don't know.

Many of today's 401(k) plans have automatic enrollment. Unless you indicate otherwise, you're automatically enrolled in the company plan, Bogosian says, and the default savings strategy might not match your goals.

While having automatic deductions is a great idea, take the strategy decisions off autopilot and think about where the money is going and how it's being invested, he says.

One big decision is how much to invest. "The easiest thing to do is say, 'What will they match?'" Bogosian says. "Whatever they'll match, that's the least amount you put in."

Unsure where to put the money initially? "If you don't like target-date options, just choose a balanced fund," he says. They have "the best risk-reward trade-off."

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