We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
How We Make Money.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for .
Editorial Integrity
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
How We Make Money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Retirement plans come in all shapes and sizes, and with varying options. It can be easy to brush your 401(k) statements aside, but it’s a mistake to assume that your retirement is secure just because you have a plan in place. Whether you’re in your 20s or 50s, it’s important to consistently evaluate your plan and take steps to safeguard it for the future.
Contribute the right amount
How much participants contribute to their retirement plans depends on their age. Financial planners generally advocate saving as much as possible. Those in their 20s should shoot for contributing 10 percent of their income. The 30s age group should aim for 15 percent, while the 40s should contribute 20 percent. Those in their 50s who haven’t saved anything should contribute the maximum amount. Including catch-up contributions, that maximum is $22,000 per year.
Regardless of your age, be sure to get the full match from your company for your 401(k), and count it toward your contribution amount. For example, if your company matches 3 percent of your income, then you should contribute 12 percent if you’re in your 30s to make an even 15 percent when planning retirement.
Spread out your funds
It’s not unusual to be perplexed by all the options in your 401(k) retirement plan. Don’t make the mistake of picking funds without understanding them. Spread out your risk by choosing four or more fund options. Choose small, mid-size and large-cap funds, plus a bond fund for stability. Investing in a foreign stock fund also helps to diversify your portfolio. As a general rule, subtract your age from 100 to get the percentage amount that you should invest in stock funds. Check out Bankrate’s asset allocation calculator to create a balanced portfolio.
Perform regular maintenance
Even though you may have spent a lot of time meticulously choosing your funds, you still need to check your plan quarterly. If you don’t, the market could adjust your portfolio in an undesirable way. Check and tweak your portfolio as needed, at least on an annual basis.
Share